Evercore ISI cuts Veris Residential stock target to $17.50

On Thursday, Evercore ISI analysts adjusted their outlook on Veris Residential (NYSE:VRE), reducing the price target to $17.50 from the previous $18.00. Despite the cut, the firm maintained its In Line rating for the real estate investment trust’s shares, which currently trade at $15.83 with a market capitalization of $1.61 billion. According to InvestingPro analysis, the stock is currently trading at a high EBIT valuation multiple, suggesting careful consideration of entry points.

The adjustment comes as Evercore ISI analysts weigh the current value of Veris Residential stock against potential future monetization events. The new price target represents a midpoint between the "going concern" value, which analysts estimate at $15 per share, and the anticipated value in the event of a monetization, which is projected to be around $20 per share. The analysts have applied a 50/50 probability to these outcomes, suggesting an equal chance for either scenario to materialize. InvestingPro data shows the company maintains strong liquidity with a current ratio of 1.22, while delivering revenue growth of 4.4% over the last twelve months.

The assessment reflects the analysts’ view of a more challenging capital markets environment, which they believe could delay any significant monetization events for Veris Residential until 2026. This projection takes into account the current market conditions that could impact the timeline for such events.

Evercore ISI’s commentary on the situation emphasizes the need for more information before any changes to the rating could be considered. "Maintain In Line rating until we get more clarity around monetization opportunities," stated the analysts, indicating that the firm’s stance on Veris Residential stock could shift with new developments regarding the company’s financial strategies.

Investors in Veris Residential stock are thus provided with an updated assessment of the company’s value, taking into account both its present standing and potential future transactions. The Evercore ISI analysts’ decision to maintain the In Line rating suggests a neutral perspective on the stock’s performance in the near term, pending further insights into the company’s plans for asset monetization. For deeper insights, InvestingPro subscribers can access a comprehensive analysis report on VRE, including additional financial health metrics and exclusive ProTips that could help inform investment decisions.

In other recent news, Veris Residential Inc. reported its first-quarter 2025 earnings, revealing a net loss of $0.12 per share, which was larger than analysts’ expectations of a $0.09 loss. Despite this, the company surpassed revenue forecasts, posting $67.76 million against the anticipated $63.8 million. The company also reported a rise in core funds from operations (FFO) per share to $0.16, up from $0.11 in the previous quarter. Veris Residential maintained a strong portfolio occupancy rate of 94%, with rental revenue increasing by 2.4%. The company reaffirmed its core FFO guidance for 2025, projecting between $0.61 and $0.63 per share. Additionally, Veris Residential announced the consolidation of its partner’s 15% stake in the Jersey City Irby joint venture for $38 million, which is expected to be accretive to earnings. The company plans to sell $300-$500 million in non-strategic assets and aims to reduce net debt to EBITDA below 9x by the end of 2026. Despite these developments, Veris Residential’s stock fell 4.1% in premarket trading following the earnings announcement.

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