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Investing.com - Raymond (NSE:RYMD) James downgraded Dream Industrial (TSX:DIR-U) (OTC:DREUF) from Strong Buy to Outperform while raising its price target to C$13.75 from C$13.00.
The downgrade follows a recent rebound in Dream Industrial’s total return performance after relatively underperforming earlier in the year, according to Raymond James.
Despite the rating cut, the firm highlighted several positive factors supporting its continued Outperform rating, including Dream Industrial’s strong balance sheet with low financial leverage ratios and its diversified tenant base resulting from a strategic focus on small-to-mid-bay urban infill industrial real estate.
Raymond James also pointed to Dream Industrial’s above-average AFFO/unit CAGR of approximately 8% from 2024 to 2026 and its discount valuation as illustrated by a historically low 2025 estimated P/AFFO multiple.
The firm suggested potential positive catalysts for Dream Industrial could include a new CAD-US free trade agreement that might support a recovery in its P/AFFO multiple valuation, as well as Dream Unlimited potentially securing a new JV partnership within Europe that could validate approximately 36% of Dream Industrial’s global portfolio fair value.
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