Douglas Emmett downgraded to Underperform from Neutral at BofA

BofA downgraded Douglas Emmett to Underperform from Neutral with a price target of $10, down from $12. The firm describes Douglas Emmett’s Q2 beat as “low quality” given share buybacks in the quarter masked higher interest expense and occupancy losses. Weak office tenant demand and poor lease economics will likely contribute to a larger-than-expected earnings drag through 2024, the analyst tells investors.