Douglas Emmett downgraded at Jefferies on potential for worst case for offices

As previously reported, Jefferies analyst Peter Abramowitz downgraded Douglas Emmett to Underperform from Hold with a price target of $13, down from $17. Despite "historically cheap" valuations following a difficult 2022, the Office REITs group "still hasn’t baked in a worst case scenario," Abramowitz tells investors. For Douglas Emmett, he sees "meaningful downside" to Street estimates, mostly due to lower office NOI, and notes that his own FFO per share forecasts are 3.5% and 8.1% below consensus for 2023 and 2024, respectively.