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Investing.com - Piper Sandler raised its price target on Boston Properties Inc. (NYSE:BXP) to $90.00 from $80.00 on Tuesday, while maintaining an Overweight rating on the real estate investment trust. According to InvestingPro data, the stock has shown strong momentum with a 4.68% return in the past week, and analysis suggests the company is currently slightly undervalued.
The price target increase comes despite Boston Properties announcing a roughly 30% dividend reduction, which Piper Sandler acknowledged was disappointing but viewed the company’s portfolio reassessment strategy as positive amid higher capital costs. It’s worth noting that InvestingPro data shows the company has maintained dividend payments for 29 consecutive years, with the current yield at 5.17%.
Boston Properties plans to improve its business model efficiency by selling down its land holdings, suburban office properties, and apartments to focus on central business district assets, according to Piper Sandler’s analysis of the company’s tri-annual investor day.
The dividend cut is expected to add approximately $0.04 to earnings in 2026 and $0.09 in 2027, as the increased cash flow reduces debt requirements for the office property owner.
Piper Sandler noted that Boston Properties management recognizes the shift from net asset value (NAV) focus to earnings growth, necessitating changes in its operational approach to deliver improved financial results.
In other recent news, Boston Properties reported a notable earnings per share (EPS) beat for Q2 2025, with an EPS of $0.56, surpassing the forecasted $0.41. Despite this positive earnings surprise, the company announced a significant reduction in its quarterly dividend, cutting it by 29% to $0.70 per share as part of a strategic reset. This dividend adjustment was unveiled during the company’s Triennial Investor Day in New York. Additionally, Evercore ISI downgraded Boston Properties from Outperform to In Line, while slightly increasing its price target to $76.00 from $75.00. The downgrade followed a notable 20% rise in the company’s stock price over the past month, compared to a 5% gain for the RMZ index, indicating limited near-term upside potential according to the research firm. These recent developments highlight significant strategic and financial adjustments at Boston Properties.
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