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Investing.com - Evercore ISI upgraded Alexandria Real Estate (NYSE:ARE) from In Line to Outperform on Monday, while raising its price target to $104.00 from $91.00. According to InvestingPro analysis, the stock appears undervalued at its current price of $84.92, with a GOOD overall financial health score.
The upgrade comes as Evercore ISI notes declining new supply in the real estate market and an upward trend in the XBI biotech index, which is expected to improve capital raising capabilities for a portion of Alexandria’s tenant base.
Despite projecting that funds from operations (FFO) will fall in 2026, Evercore ISI anticipates an improving demand environment as interest rates are expected to decrease.
The research firm believes these factors could allow Alexandria Real Estate’s stock multiple to increase over the next year, supporting the higher price target.
Alexandria Real Estate specializes in owning, operating, and developing life science, technology, and agtech campuses in innovation cluster locations across the United States.
In other recent news, Alexandria Real Estate reported its second-quarter 2025 financial results, revealing a mixed performance. The company posted a loss with earnings per share at -$0.64, falling short of analyst expectations of $0.59. However, revenue for the quarter reached $762 million, surpassing forecasts and contributing to a positive market reaction. Despite the earnings miss, Alexandria’s Core Funds From Operations (FFO) stood at $2.33 per share, exceeding both JMP Securities’ expectation of $2.21 and the consensus estimate of $2.28. JMP Securities maintained its Market Outperform rating, setting a price target of $130.00. Evercore ISI also responded to the results by raising its price target to $91.00 from $89.00 while maintaining an "In Line" rating. These developments highlight the company’s ability to generate higher net operating income, although offset by interest expenses.
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