Analysts modestly raised BXP’s price target to $78.22, reflecting strong property performance and management’s strategic pivot toward residential development, though upside is tempered by larger asset sales, slower revenue growth, and share price gains.
Analyst Commentary
- Bullish analysts highlight outperformance of BXP's trophy properties versus broader office assets, demonstrated higher occupancy trends, and progress on development-driven growth, with management showing confidence in future capital sources, including private equity.
- Management is shifting strategic focus from life science to residential opportunities through new development projects and property dispositions.
- Bearish analysts point to larger-than-expected asset sales and slower revenue growth, leading to concerns about future earnings and prompting some to lower ratings or expectations for consensus estimates.
- Recent share price appreciation (~20% over the past month) has limited perceived upside and increased risk premiums, causing some analysts to become more cautious despite improved operational outlooks.
- Adjustments in price targets also reflect minor revisions in occupancy and interest expense assumptions, as well as the impact of recent dividend cuts reported in earnings.
What's in the News
- Quarterly cash dividend declared at $0.70 per share, reflecting a decrease.
- BXP to host Analyst/Investor Day to discuss strategies, projects, and financial outlook.
- Full-year 2025 EPS guidance raised to $1.74–$1.82, driven by asset sale gains and stronger FFO.
- Construction begun on 343 Madison Avenue, with a major financial institution set to anchor 30% of the building; project targets top sustainability certifications.
- Q3 2025 EPS guidance issued at $0.41–$0.43.
Valuation Changes
Summary of Valuation Changes for BXP
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $77.11 to $78.22.
- The Consensus Revenue Growth forecasts for BXP has significantly fallen from 2.5% per annum to 2.2% per annum.
- The Future P/E for BXP has significantly fallen from 47.97x to 42.72x.
Disclaimer
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