UPDATE: Evercore ISI Upgrades Boston Properties Inc. (BXP) to Outperform

Evercore ISI analyst Steve Sakwa upgraded Boston Properties Inc. (NYSE: BXP) from In Line to Outperform with a price target of $100.00 (from $104.00).

The analyst comments "...we’ve made several underwriting and valuation changes to our model including an increase to our unlevered IRR target, an increased to our applied cap rate in our NAV, a reduced AFFO multiple and tweaks to both our occupancy and capex assumptions. Inside the note, we detail these changes in more detail and provide a summary of the takeaways from the deep dive into BXP’s portfolio and operations. As a result of these updates, our PT decreased from $104 to $100. However, with the stock currently trading at $77/sh, we see this as an opportune time to buy given the YTD return of -32.7% (underperformed the RMZ by 9%) and our PT of $100 implies a ~34% return inclusive of a well-covered 5% dividend yield. With the stock trading at an implied cap rate of ~7% and an implied price psf of ~$630, we are upgrading BXP from In-Line to Outperform. While the hybrid work and economic challenges to the office sector remain, we think much of the downside to office is priced in at this point and BXP can relatively outperform the sector given their healthy B/S, attractive development pipeline, and premier office portfolio that is set to capture outsized demand going forward."

For an analyst ratings summary and ratings history on Boston Properties Inc. click here. For more ratings news on Boston Properties Inc. click here.

Shares of Boston Properties Inc. closed at $77.47 yesterday.

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