BMO Capital initiates Alexandria Real Estate stock with Outperform rating

Published 23/09/2025, 09:20
BMO Capital initiates Alexandria Real Estate stock with Outperform rating

Investing.com - BMO Capital initiated coverage of Alexandria Real Estate (NYSE:ARE), a prominent $14.9 billion market cap healthcare REIT with a 6.15% dividend yield and 29-year dividend maintenance track record, with an Outperform rating and a price target of $100.00 on Tuesday.

The research firm identified Alexandria as the premier life science REIT, though noted the company has recently faced pressure due to record-high lab/office new supply and demand headwinds.

BMO Capital highlighted that while Alexandria’s portfolio and balance sheet have remained defensive, the firm estimates Core FFOPs will decline by 9.8% in 2026 before turning positive in 2027.

The investment bank pointed out that Alexandria currently trades at a discounted 2026 AFFOx multiple of 13.5x compared to its historical levels.

BMO Capital’s analysis suggested that positive trends in the BioPharma industry will likely support Alexandria shares, noting the stock’s historical correlation to the XBI biotech index.

In other recent news, Alexandria Real Estate reported a second-quarter 2025 loss with earnings per share at -$0.64, falling short of analyst forecasts of $0.59. Despite the loss, the company’s revenue of $762 million surpassed expectations. JMP Securities reiterated its Market Outperform rating on Alexandria Real Estate, maintaining a $130.00 price target after the company reported Core Funds From Operations (FFO) of $2.33 per share, exceeding both JMP’s and the consensus estimates. Evercore ISI upgraded Alexandria Real Estate’s stock rating to Outperform, raising the price target to $104.00 from $91.00, citing declining new supply in the real estate market and an upward trend in the XBI biotech index. Previously, Evercore ISI had raised its price target to $91.00 while maintaining an "In Line" rating before the upgrade. The firm’s adjustments were based on Alexandria’s second-quarter financial results, which slightly exceeded their FFO estimate. These developments reflect ongoing analyst interest and adjustments in response to Alexandria’s recent performance.

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