Centerspace (CSR – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst John Kim from BMO Capital upgraded the rating on the stock to a Buy and gave it a $77.00 price target.
John Kim’s rating is based on several compelling factors that make Centerspace an attractive investment. Despite the concentration risks and higher leverage associated with the company, it is currently trading at a significant discount compared to its peers in the Apartment REIT sector. This valuation gap presents a potential opportunity for investors, especially considering the company’s defensive positioning within the REITs.
Furthermore, Centerspace has demonstrated strong performance in terms of lease rate growth, surpassing the average in 2024 and aligning with expectations for 2025. The anticipated easing of supply in key markets like Minneapolis and Denver, which contribute a substantial portion of the company’s net operating income, is expected to support rent growth above the national average. These factors collectively underpin John Kim’s decision to upgrade Centerspace to a Buy rating.