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Investing.com - Boston Properties Inc. (NYSE:BXP), a $13.5 billion market cap office REIT currently trading at $76.75, maintained its Overweight rating with a $90.00 price target in a research note from Piper Sandler on Friday. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value assessment.
The research firm highlighted Boston Properties’ plans to sell nearly $2 billion in assets, significantly exceeding Piper Sandler’s initial expectation of approximately $500 million in land sales. This substantial divestiture strategy was revealed during the company’s tri-annual investor day. The company has demonstrated financial resilience, maintaining dividend payments for 29 consecutive years with a current yield of 3.67%.
Piper Sandler identified 360 Park Avenue South and the Gateway joint venture in South San Francisco as the company’s "two biggest development headaches," alongside the Dock72 project. The firm suggested Boston Properties could further refine its capital allocation by limiting investments based on available funding options.
The research note emphasized Boston Properties’ growth opportunities in Washington, DC, where local private developers have paused projects, as well as at 343 Madison Avenue and through residential land conversions across its suburban portfolio.
Piper Sandler questioned whether Boston Properties’ smaller markets in Los Angeles and Seattle remain essential to the company’s strategy, noting their "small size and lagging fundamentals" compared to other regions in the portfolio.
In other recent news, Boston Properties Inc. has seen several adjustments to its stock price targets following its Investor Day presentation. Piper Sandler raised its price target to $90 from $80, maintaining an Overweight rating, despite the company’s announcement of a roughly 30% dividend reduction. UBS increased its price target to $74 from $68, keeping a Neutral rating, citing Boston Properties’ strategy for occupancy gains and balance sheet improvements. Truist Securities also adjusted its price target to $77 from $71, maintaining a Hold rating, highlighting the company’s focus on trophy properties. BMO Capital lowered its price target to $84 from $86, but maintained an Outperform rating, noting management’s optimism about occupancy growth. KeyBanc reiterated its Sector Weight rating, emphasizing the company’s execution strategy through 2027, which includes leasing additional space and pursuing select development opportunities. These developments reflect varied analyst perspectives on Boston Properties’ strategic plans and financial outlook.
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