BTIG analyst Tom Catherwood reiterated a Buy rating on COPT Defense Properties (CDP – Research Report) yesterday and set a price target of $38.00.
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Tom Catherwood has given his Buy rating due to a combination of factors that position COPT Defense Properties favorably in the current market environment. The company’s focus on Department of Defense (DoD) missions, which comprises 90% of its revenue, insulates it from the potential impacts of government spending cuts by the Department of Government Efficiency (DOGE). Additionally, there is potential for increased leasing and development opportunities if the U.S. Space Command headquarters relocates to Redstone Arsenal in Huntsville, Alabama.
Furthermore, the modernization of U.S. missile systems is expected to be a priority, with likely funding directed to Redstone Arsenal, which could benefit CDP due to its involvement in missile defense. The company’s recent acquisition of land for data center shell development also presents growth prospects as they seek to expedite development by potentially self-performing substation construction. Lastly, with CDP trading at a discount to its net asset value and the implied potential for a significant total return, the stock presents an attractive valuation, reinforcing the Buy recommendation.
Catherwood covers the Real Estate sector, focusing on stocks such as COPT Defense Properties, Alexandria Equities, and Prologis. According to TipRanks, Catherwood has an average return of -1.9% and a 43.97% success rate on recommended stocks.
In another report released on February 3, Evercore ISI also maintained a Buy rating on the stock with a $37.00 price target.