Boston Properties stock rating downgraded by Evercore ISI to In Line

Investing.com - Evercore ISI downgraded Boston Properties Inc. (NYSE:BXP), a $13.4 billion market cap office REIT, from Outperform to In Line on Tuesday, while slightly raising its price target to $76.00 from $75.00.

The downgrade follows a significant 20% increase in Boston Properties’ stock price over the past month, compared to just a 5% gain for the RMZ index, suggesting limited near-term upside potential according to the research firm. According to InvestingPro analysis, the stock currently trades at a high earnings multiple, though Fair Value calculations suggest slight undervaluation.

Evercore ISI’s updated model shows marginal changes for Boston Properties’ 2025 outlook, but indicates a larger disposition program and slower revenue growth compared to previous expectations for 2026 and 2027.

The firm noted these factors will reduce its FFO (funds from operations) estimates for those years, though this will be partially offset by a higher projected occupancy rate for the real estate investment trust.

Evercore ISI also expects Street consensus estimates to move lower as Boston Properties plans to sell more assets over the next two-plus years to help reduce leverage on its balance sheet and fund growth initiatives.

In other recent news, Boston Properties (BXP) reported a notable performance in its Q2 2025 earnings call, surpassing earnings per share (EPS) expectations. The company posted an EPS of $0.56, significantly higher than the projected $0.41. Despite this earnings beat, Boston Properties announced a strategic move to reduce its quarterly dividend by 29%. The new dividend is set at $0.70 per share, down from the previous $0.98, as part of a broader strategy discussed during its Triennial Investor Day. The dividend is payable on October 31 to shareholders of record as of September 30. This decision reflects a strategic reset amidst broader market concerns in the office real estate sector. Additionally, Boston Properties has raised its full-year guidance, indicating a positive outlook from the company. These developments are part of the company’s ongoing efforts to navigate the current economic landscape.

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