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Investing.com - Truist Securities raised its price target on Boston Properties Inc. (NYSE:BXP), a $12.8 billion office REIT, to $77.00 from $71.00 on Wednesday, while maintaining a Hold rating on the stock. According to InvestingPro analysis, the company appears slightly undervalued at current levels, with additional insights available through their comprehensive Pro Research Report.
The price target adjustment follows Boston Properties’ investor day held on Monday in New York, where the company outlined its strategy focusing on trophy properties and their outperformance compared to broader office assets.
During the presentation, Boston Properties management highlighted several key initiatives including a path toward higher occupancy, development-driven growth, and access to multiple capital sources including private equity.
The company shifted its focus away from life science properties, which were prominent in previous discussions, and instead emphasized residential opportunities through both development and dispositions.
Boston Properties also announced a reduction in its common dividend, while providing information suggesting what Truist Securities described as "apparently muted FFO growth in 2026."
In other recent news, Boston Properties announced a significant reduction in its quarterly dividend by 29%, as part of a strategic reset unveiled at its Investor Day. The company’s Board of Directors declared a new quarterly cash dividend of $0.70 per share, down from the previous $0.98 per share. This adjustment aligns with Boston Properties’ broader plan to address higher capital costs. In terms of analyst activity, Piper Sandler raised its price target for Boston Properties to $90 from $80, maintaining an Overweight rating despite the dividend cut, as they view the company’s portfolio reassessment strategy positively. UBS also increased its price target to $74 from $68, maintaining a Neutral rating, following the company’s strategic focus on occupancy gains and balance sheet improvement. Meanwhile, BMO Capital adjusted its price target to $84 from $86, keeping an Outperform rating. Conversely, Evercore ISI downgraded the stock to In Line from Outperform, slightly raising its price target to $76 from $75, citing limited near-term upside potential. These developments reflect a range of perspectives on Boston Properties’ recent strategic and financial actions.
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