In a report released today, Barry Oxford from Colliers Securities maintained a Hold rating on City Office REIT (CIO – Research Report), with a price target of $5.50.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Barry Oxford has given his Hold rating due to a combination of factors influencing City Office REIT’s current financial landscape. Despite the company’s strong leasing performance and occupancy rates showing improvement, there remains a significant level of uncertainty in the broader office sector. This uncertainty is exacerbated by banks’ reluctance to issue new loans within the sector, which can affect future growth prospects.
Furthermore, while City Office REIT operates in favorable markets in the Southwest and Southeast, boasting well-equipped buildings, the firm’s substantial debt level poses a risk. With a debt-to-total market capitalization ratio of approximately 79%, this financial leverage could impact their flexibility moving forward. Although the company has taken steps such as selling a property post-quarter to manage its portfolio, the overall financial and market conditions have led to the neutral Hold rating by Barry Oxford.
Oxford covers the Real Estate sector, focusing on stocks such as Mid-America Apartment, AvalonBay, and Equity Lifestyle. According to TipRanks, Oxford has an average return of 2.1% and a 56.85% success rate on recommended stocks.