UBS Remains Sidelined on Alexandria Real Estate (ARE) After Adjusting Estimates - PT to $110
- Oil steady around $50 on doubts over OPEC output cuts
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- Universal Health (UHS) Disputes and Denies Conclusions in BuzzFeed Article
- Perrigo (PRGO) to Restructure BCH Omega Pharma Belgium Business; Will Terminate EuroGenerics Agreement
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
UBS reiterated a Neutral rating on Alexandria Real Estate (NYSE: ARE), and raised the price target to $110.00 (from $94.00), after adjusting estimates. UBS revised 2016 FFO estimates to $5.53 vs. $5.48-$5.54 guidance range and 2017 FFO to $6.05 from $5.98, primarily to reflect 2Q results and the One Kendall Square acquisition.
Analyst Nick Yulico commented, "Demand from life science tenants remains strong against a tight supply backdrop, resulting in y/y rent growth of 15% in ARE's core markets. With 2Q earnings, ARE now expects cash SS NOI growth of +4%-6% (+3.5%-5.5% previously) and cash rent spreads in the +7%-10% range (+6%-9% previously). The 3.5m sf development pipeline (81% leased) remains on track to create $195m-210m of incremental annual NOI through 2016-18. We think these are good projects that will cater to lab space and tech demand, but we believe much of this NAV creation benefit (and associated FFO growth) is already priced into ARE's stock today, which trades at a ~5% discount to our revised forward NAV estimate."
Shares of Alexandria Real Estate closed at $114.52 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Mizuho Securities Upgrades Tailored Brands (TLRD) to Buy
- Mizuho Securities Upgrades Lululemon Athletica Inc. (LULU) to Buy; Sees Upside Continuing
- Oppenheimer Raises Price Target on NeuroDerm (NDRM) to $30 After Meeting with FDA
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesUBS, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!