Alexandria Real Estate stock price target lowered to $79 at Cantor Fitzgerald

Investing.com - Cantor Fitzgerald lowered its price target on Alexandria Real Estate (NYSE:ARE) to $79.00 from $88.00 on Monday, while maintaining a Neutral rating on the life science real estate investment trust. According to InvestingPro data, the stock appears undervalued at its current price of $73.92, with a price-to-book ratio of just 0.74.

The firm cited persistent headwinds facing the Class A life science REIT despite its deep bench of real estate and scientific talent. Cantor Fitzgerald noted that ARE has been a frequent topic in recent investor meetings, likely due to the stock’s significant decline since early 2022. The stock has fallen over 33% in the past year, though it maintains strong fundamentals with a current ratio of 3.24 and an impressive dividend yield of 7.14%.

The price target reduction stems from Cantor Fitzgerald’s lowered 2026 estimates for Alexandria, which the firm described as a "miss" during their launch process. The firm maintained its mid-12x 2026 estimated AFFO target multiple in calculating the new price objective.

Despite increased investor interest in Alexandria Real Estate and potential narrative shifts based on perspectives from Cantor’s biotech colleagues, the firm believes "it is early to draw any firm corner-turning conclusions" for the company.

Alexandria Real Estate shares have faced multiple challenges in recent years, though the firm acknowledged the company’s strong positioning as a Class A life science REIT with substantial real estate and scientific expertise.

In other recent news, Alexandria Real Estate has been the focus of several analyst actions and company developments. BMO Capital initiated coverage of Alexandria Real Estate with an Outperform rating, setting a price target of $100.00. This reflects confidence in the company despite recent challenges related to lab and office space supply and demand. Conversely, BNP Paribas Exane downgraded the stock to Underperform, adjusting their financial projections and setting a price target of $82.00. Jefferies also weighed in, initiating a Hold rating with a price target of $80.00. Cantor Fitzgerald provided a Neutral rating with a price target of $88.00, noting the company’s AFFO multiple is below the industry average. In corporate developments, Alexandria Real Estate announced the opening of Lilly Gateway Labs San Diego at its One Alexandria Square campus. This new facility, in partnership with Eli Lilly, aims to support biotechnology companies in medicine development, marking the fourth such location in the United States.

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