COPT Defense Properties (CDP): Evaluating Valuation as Shares Trade Below Analyst Targets

COPT Defense Properties (CDP) shares ended the last session slightly higher, closing at $28.88. Over the past month, the stock slipped by 3%, even as its annual revenue and net income both grew modestly.

See our latest analysis for COPT Defense Properties.

Zooming out, the past year has been challenging for COPT Defense Properties, with short-term share price returns fading and the 1-year total shareholder return coming in at roughly -3%. However, its solid 3- and 5-year total shareholder returns of 47% and 39%, respectively, suggest that investors who stuck it out have been rewarded for their patience. This shifting momentum hints at changes in market sentiment and evolving expectations for future growth.

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With shares lingering below analyst price targets and trading at a notable discount to intrinsic value, investors have to wonder: is COPT Defense Properties a hidden bargain, or has the market already factored in future growth prospects?

Most Popular Narrative: 11.3% Undervalued

With the most widely followed narrative putting fair value at $32.57, COPT Defense Properties looks attractively priced relative to its last close of $28.88. Recent shifts in analyst expectations and required returns are shaping a renewed outlook for the company's share price trajectory.

The unprecedented increase in U.S. defense spending, including a 13% year-over-year budget rise and a $175 billion commitment to the Golden Dome missile defense project, is creating a multi-year runway of strong demand for specialized, mission-critical government and defense contractor facilities. This environment is supporting sustained leasing activity, higher occupancy rates, and accelerating FFO and revenue growth in late 2025 and beyond.

Read the complete narrative.

Want to know what powers this bullish stance? The projection is built on aggressive revenue gains, resilient profit margins, and a valuation multiple typically reserved for premium growth stocks. Which statement upends the sector's conventional wisdom? Uncover the growth leaps, margin assumptions, and future PE expectations that fuel this compelling valuation.

Result: Fair Value of $32.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, as with any investment, heavy reliance on government budgets and high tenant concentration could challenge growth if political or funding priorities shift.

Find out about the key risks to this COPT Defense Properties narrative.

Build Your Own COPT Defense Properties Narrative

If you see things differently or want to dig deeper on your own, you can craft your own unique data-driven view in just a few minutes by using Do it your way.

A great starting point for your COPT Defense Properties research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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