John Kim, an analyst from BMO Capital, has initiated a new Buy rating on Alexandria Equities (ARE).
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John Kim has given his Buy rating due to a combination of factors that highlight Alexandria Real Estate’s strong position in the life science real estate sector. Despite recent pressures from increased lab and office supply and demand challenges, Alexandria’s portfolio and financial structure remain robust. The company is expected to experience a temporary decline in core funds from operations per share by 2026, but a positive turnaround is anticipated in 2027.
Additionally, Alexandria’s stock is currently trading at a discounted valuation compared to its historical averages, which presents an attractive opportunity for investors. The company’s strategic focus on major life science clusters and its Megacampus strategy enhance its competitive advantage by fostering a cluster effect and providing access to talent. Furthermore, the positive trends in the BioPharma industry are likely to support Alexandria’s shares, making the stock a compelling buy according to John Kim.
In another report released on September 15, Evercore ISI also upgraded the stock to a Buy with a $104.00 price target.