Mizuho Securities Upgrades Highwoods Properties Inc. (HIW) to Buy

April 28, 2020 6:23 AM EDT
Get Alerts HIW Hot Sheet
Price: $47.08 +0.19%

Rating Summary:
    10 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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Mizuho Securities analyst Omotayo Okusanya upgraded Highwoods Properties Inc. (NYSE: HIW) from Neutral to Buy with a price target of $45.00 (from $51.00).

The analyst comments "There is very little "noncore" income in HIW's earnings stream. The market repositioning exercise (Buy Charlotte, Exit Memphis & Greensboro) was completed before the pandemic, with exit cap-rates in Memphis and Greensboro much better than we expected (mid-6s vs. our estimate of low-to-mid-7s). 2020 FFO/sh earnings growth should be particularly strong (9.0%) due to fewer large-tenant move-outs which plagued 2018 & 2019. At 1) 9.9x P/FFO vs. Office REIT average P/FFO of 16.3x, and 2) 15.3x P/AFFO vs. Office REIT average of 20.6x, we see HIW as a solid Growth At A Reasonable Price (GARP) play and we upgrade to Buy from Hold despite lowering our PT to $45 from $51."

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

Shares of Highwoods Properties Inc. closed at $36.75 yesterday.

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