Nearshoring Experts & Technology stock initiated at Overweight by Morgan Stanley

Published 04/09/2025, 11:26
Nearshoring Experts & Technology stock initiated at Overweight by Morgan Stanley

Investing.com - Morgan Stanley initiated coverage on Nearshoring Experts & Technology (NEXT25:MM) with an Overweight rating and a price target of Peso115.00 on Thursday.

The investment bank cited three structural drivers supporting its positive outlook on the Mexican real estate company, including portfolio repricing with nearly 50% of F. Next’s portfolio set to roll over in the next three years.

Morgan Stanley’s analysis identified rising capital intensity and demand for smarter space as factors that could push asking rents higher, noting that even after a 40% surge in rents, the sector isn’t over-earning.

The firm’s proprietary analysis examined over 200 projects since 2014, focusing on replacement costs and yield-on-costs across regions, with particular confidence in Mexico City and the metro area where absorption rates remain at highs.

Morgan Stanley also highlighted significant growth potential, suggesting Mexico could be short at least 10 million square meters of gross leasable area, with developer spreads still attractive at 300-400 basis points.

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