On Tuesday, Truist Securities updated its stance on Boston Properties Inc. (NYSE:BXP), increasing the price target to $83 from the previous $77, while keeping a Hold rating on the company's shares. The adjustment reflects the analyst's expectation that Boston Properties will approach pre-pandemic occupancy levels in the future, enhancing the company's discounted cash flow and justifying the elevated price target.
According to InvestingPro data, the stock has shown strong momentum with a 38.5% price increase over the past six months, and currently offers a notable 4.85% dividend yield.
Boston Properties, which has a significant presence on the West Coast, may face more challenges in its markets compared to its peers. The analyst noted that while no significant growth in FFO per share is projected for 2025, improvements in the West Coast market conditions could position Boston Properties as a value investment when compared to other office stocks that are more focused on the New York market and have higher valuations.
With a market capitalization of $14.15 billion and revenue growth of 4.47% in the last twelve months, the company maintains its position as a prominent player in the Office REITs industry.
The commentary from Truist Securities highlights the potential for Boston Properties' stock to become attractive if the West Coast markets, where the company operates, show signs of improvement. The firm's analysis suggests that while immediate growth is not anticipated, there is an opportunity for future valuation increases.
In other recent news, Boston Properties, Inc. reported a strong third quarter in 2024, with Funds from Operations (FFO) per share slightly exceeding expectations at $1.81. The company also completed over 1.1 million square feet of new leasing during this period. Furthermore, Boston Properties has adjusted its full-year FFO guidance to a range of $7.09-$7.11 per share.
The company is currently engaged in 9 development projects totaling 2.7 million square feet. Additionally, Boston Properties anticipates occupancy gains and a market recovery, with plans to create value through strategic land use and development. The company's leadership expressed optimism about the market's recovery and the potential for growth through strategic transactions.
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