Mizuho raises Cousins Properties stock rating, price target to $30Cousins Properties stock outlook improves with Austin growth and robust FFO guidance

Published 07/01/2025, 09:52
Mizuho raises Cousins Properties stock rating, price target to $30Cousins Properties stock outlook improves with Austin growth and robust FFO guidance

On Tuesday, Mizuho (NYSE:MFG) analysts upgraded Cousins Properties (NYSE:CUZ) stock, listed on the New York Stock Exchange (NYSE:CUZ), changing the rating from Underperform to Neutral.

This adjustment comes with a significant increase in the price target, which has been set to $30.00, up from the previous $22.00. The stock currently trades at $30.23, near its 52-week high of $32.55, reflecting a remarkable 37.88% gain over the past six months according to InvestingPro data.

The revision of Cousins Properties' stock rating by Mizuho is primarily attributed to a combination of factors that suggest an improved outlook for the company. Analysts at Mizuho point to the strengthening fundamentals in the Austin market, which are expected to drive rent growth.

Additionally, Cousins Properties' capability to expand its occupancy rates and to effectively deploy additional capital were cited as reasons for the upgrade. InvestingPro data shows the company maintains a strong dividend track record, having paid dividends for 46 consecutive years, with a current attractive yield of 4.23%.

The new price target of $30.00 represents a shift in Mizuho's valuation of Cousins Properties stock, indicating a neutral stance on its investment potential. According to the analysts, the new target price does not imply any upside from the current market price, suggesting that the stock is fairly valued at present.

The analysts' commentary also reflects a balanced view of the risks and rewards associated with Cousins Properties shares. They note that while there are positive aspects to the company's performance, this is counterbalanced by the stock's relative outperformance compared to its peer, Highwoods Properties (NYSE:HIW), over the last three months.

Mizuho's adjusted outlook on Cousins Properties is grounded in the latest market trends and company's strategic moves, without any speculation on long-term market implications or broader industry trends. The focus remains strictly on the present assessment of the company's stock performance and potential.

In other recent news, Cousins Properties has been the subject of several noteworthy developments. The company has been upgraded from Hold to Buy by Jefferies, reflecting a positive outlook on its growth prospects. This upgrade was based on the quality of Cousins Properties' portfolio and its potential for growth, particularly in the Sunbelt markets.

Furthermore, Cousins Properties has made significant acquisitions, including Sail Tower, a premium office property in Austin, for $521.8 million, and Vantage South End, an office property in Charlotte, for $328.5 million. These acquisitions are part of the company's strategic focus on trophy assets and opportunistic investments.

In terms of financial performance, Cousins Properties reported robust results, with Funds From Operations (FFO) reaching $0.67 per share and a 4.4% increase in same-property net operating income. Following these results, the company's 2024 FFO guidance was upgraded to between $2.66 and $2.70 per share.

On the analyst front, Baird maintained an Outperform rating on Cousins Properties and increased the price target to $34.00. Conversely, BMO Capital moved its rating to 'Market Perform'. Truist Securities also adjusted its outlook on Cousins Properties, elevating the real estate investment trust's price target to $33.00, reflecting confidence in the company's growth potential.

Lastly, Cousins Properties has announced several public offerings, pricing a $400 million offering of senior unsecured notes to fund the acquisition of Sail Tower. The company also launched public offerings of 9.5 million shares and another offering of 6 million shares, aiming to raise approximately $188 million. These offerings are part of the company's strategy to fund future acquisitions and development projects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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