Mizuho Securities Downgrades Cousins Properties (CUZ) to Underperform

Mizuho Securities analyst Vikram Malhotra downgraded Cousins Properties (NYSE: CUZ) from Neutral to Underperform with a price target of $22.00.

The analyst comments "Why Underperform on CUZ? CUZ has been a consensus long during the past three years, and today the stock trades a relative premium to the group versus its historical discount. Relative to debt (risk premium to 10yr TIPs), the stock also screens expensive (see investment case inside). Overall, CUZ has 31% exposure to Austin (rental NOI) and 37% exposure to Atlanta (two markets
we are concerned about), but we also see some specific risks. These include, 1) specific risks to occupancy given growing sublet risk (Meta has over 100k feet) and lower corporate demand in general, 2) continued MTM deceleration on renewal, and 3) risk to 2023 numbers from a weaker fundamental trajectory and higher interest expense – our 2023 FFO estimate is the low on the Street (see table inside). Our updated price target of $22 implies 12% downside."

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

Shares of Cousins Properties closed at $24.76 yesterday.

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