Boston Properties stock price target lowered to $84 at BMO Capital

Investing.com - BMO Capital has reduced its price target on Boston Properties Inc. (NYSE:BXP) to $84.00 from $86.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock is currently trading below its Fair Value, with analyst targets ranging from $65 to $91.

The adjustment follows Boston Properties’ triannual Investor Day, which BMO described as "informative, but incremental." The firm noted management appeared more optimistic about occupancy growth and provided supporting evidence for this outlook.

BMO highlighted that Boston Properties stated its main focus is delivering earnings growth while maintaining moderate leverage. This strategy included a 28.5% dividend cut, which had previously been considered an overhang for the stock. Despite the recent cut, InvestingPro data shows the company has maintained dividend payments for 29 consecutive years, with the current yield at 5.17%. Additional insights and 6 more ProTips are available for subscribers.

The research firm believes Boston Properties "got the bad news on earnings headwinds out," though it expects 2026 consensus estimates will likely be reduced. BMO has lowered its 2025-2026 FFO per share estimates by $0.01 and $0.29 respectively.

Despite the price target reduction, BMO Capital maintained its Outperform rating on Boston Properties stock, suggesting continued confidence in the company’s long-term prospects. The stock has shown positive momentum with a 4.68% return over the past week, while maintaining a "FAIR" overall financial health score according to InvestingPro’s comprehensive analysis.

In other recent news, Boston Properties reported a significant earnings per share (EPS) beat for Q2 2025, with $0.56 compared to the forecasted $0.41. Despite this positive earnings report, the company announced a substantial reduction in its quarterly dividend by 29%, declaring a cash dividend of $0.70 per share, down from the previous $0.98. This dividend cut is part of a broader strategic plan unveiled at the company’s Triennial Investor Day. Additionally, UBS and Piper Sandler have raised their price targets for Boston Properties to $74 and $90, respectively, with UBS maintaining a Neutral rating and Piper Sandler an Overweight rating. Piper Sandler acknowledged the dividend reduction but viewed the company’s portfolio reassessment strategy positively. On the other hand, Evercore ISI downgraded Boston Properties from Outperform to In Line, raising concerns about limited near-term upside potential. These developments highlight the various strategic and financial adjustments Boston Properties is making in response to current market conditions.

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