Mizuho Securities Raises Price Target on Alexandria Real Estate (ARE) to $113; Reiterates Buy

Mizuho Securities reiterated a Buy rating on Alexandria Real Estate (NYSE: ARE), and raised the price target to $113.00 (from $110.00), as the company continues to target its long-term debt/EBITDA goal of sub 6x. Management is inclined to stick with the plan to tap dispositions and EBITDA growth as the primary de-leveraging tools.

Analyst Richard Anderson commented, "With the planned acquisition of One Kendall Square in East Cambridge ($725mm @ 4.7% initial cash cap rate), we think the benefit of the forward equity offering is at least two-fold: a) it addresses the funding of the deal (~ $500mm of equity needed) in an earnings-friendly manner, while b) taking ARE down the de-leveraging path at a faster rate (now targeting 6.4x by 4Q16 vs. 6.7x previously). As such, we reiterate our Buy rating and are increasing our PT to $113 from $110 (no methodology change)."

For an analyst ratings summary and ratings history on Alexandria Real Estate click here. For more ratings news on Alexandria Real Estate click here.

Shares of Alexandria Real Estate closed at $101.27 yesterday.

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