A Look at Cousins Properties’s Valuation Following Earnings Growth and New Sunbelt Acquisition Plans

Cousins Properties (CUZ) just shared its latest quarterly earnings, showing increased year-over-year revenue along with a dip in net income. In addition to reporting earnings, management revealed plans to pursue new acquisitions focused on Sunbelt assets.

See our latest analysis for Cousins Properties.

After the earnings release and with fresh acquisition plans in play, Cousins Properties’ share price has struggled to find its footing. While there’s clear progress operationally, the stock’s year-to-date share price return is down 16.8% and its one-year total shareholder return logged a loss of 14.9%, signaling fading momentum over the short term. At the same time, longer-term, three-year total returns stand positive at nearly 18%.

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With shares trading nearly 26% below analyst price targets and operational improvements in sight, the key question remains: does Cousins Properties present an undervalued opportunity, or is future growth already reflected in its price?

Most Popular Narrative: 21.6% Undervalued

With Cousins Properties trading at $25.73 versus a widely-followed fair value estimate of $32.83, the narrative signals potential upside beyond current levels. Analysts seem to believe that market price has not yet caught up with projected future growth and earnings drivers.

The migration of businesses and populations to Sun Belt cities is continuing to drive above-average demand for high-quality office space in Cousins' core markets (Atlanta, Austin, Dallas, Charlotte, Tampa, Phoenix), as evidenced by robust leasing activity, strong net absorption, and new-to-market tenant requirements. This is likely to support higher occupancy rates and drive revenue growth.

Read the complete narrative.

Want the inside scoop behind this bullish view? The narrative’s fair value hinges on bold revenue and earnings growth projections most investors would not expect from the sector. Curious which aggressive industry trends and margin forecasts form the foundation of this premium price target? The full story awaits.

Result: Fair Value of $32.83 (UNDERVALUED)

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

However, large tenant move-outs or prolonged remote work trends could quickly erode occupancy rates and challenge future revenue assumptions for Cousins Properties.

Find out about the key risks to this Cousins Properties narrative.

Another View: Multiples Raise Caution

Looking beyond fair value estimates, Cousins Properties stands out as expensive when using the most common price-to-earnings measure: 75x, versus a peer average of 39.7x and a global industry average of 22.4x. Even our calculated fair ratio is much lower at 35.7x. This wide gap suggests investors are paying a hefty premium, potentially exposing the stock to valuation risk if market sentiment shifts. Could this premium signal confidence in future growth, or is it a warning sign to re-examine expectations?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Cousins Properties Narrative

If the current consensus does not quite match your outlook or you prefer hands-on analysis, it only takes a few minutes to build a personalized narrative based on your own insights. Do it your way

A great starting point for your Cousins Properties research is our analysis highlighting 4 key rewards and 2 important warning signs 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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