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Investing.com - JPMorgan has upgraded Boston Properties Inc. (NYSE:BXP), a prominent player in the Office REITs industry, from Neutral to Overweight with a price target of $83.00. According to InvestingPro analysis, the stock appears undervalued at its current price of $70.39.
The upgrade reflects JPMorgan’s view that the office market is bottoming out from an occupancy perspective, with BXP’s portfolio expected to show improvement in 2026 and into 2027.
The firm noted that Boston Properties has demonstrated strong leasing activity over the past several quarters, which should begin driving earnings growth in the next couple of years as these leases commence.
JPMorgan also highlighted that a dividend reset, combined with a sales program and a $1 billion convert at a low-3% effective rate, has helped mitigate some interest rate headwinds for the company.
The upgrade comes as Boston Properties positions itself to benefit from what JPMorgan sees as an upcoming recovery phase in the commercial office real estate sector.
In other recent news, Boston Properties Inc. announced the pricing of an $850 million offering of exchangeable senior notes due in 2030, which was upsized from a previously planned $600 million. The notes, which carry a 2.000% interest rate, are set to mature on October 1, 2030, with semi-annual interest payments starting in April 2026. During its tri-annual investor day, Boston Properties also disclosed plans to sell nearly $2 billion in assets, a figure that significantly surpasses Piper Sandler’s initial expectation of $500 million in land sales.
Cantor Fitzgerald has initiated coverage of Boston Properties with an Overweight rating, assigning a $90 price target, suggesting a 20% upside potential. Piper Sandler also maintained its Overweight rating on the company, aligning with Cantor Fitzgerald’s price target. Meanwhile, KeyBanc reiterated its Sector Weight rating on Boston Properties, following a presentation where the company outlined its strategic plans through 2027. These plans include leasing additional space, focusing on existing properties, and selectively pursuing office and residential development opportunities.
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