In a report released today, John Kim from BMO Capital upgraded Easterly Government Properties to a Hold, with a price target of $25.00.
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John Kim has given his Hold rating due to a combination of factors that suggest a more balanced risk/reward profile for Easterly Government Properties going forward. The company’s shares have significantly underperformed compared to the broader market, but recent strategic changes, including a dividend cut and a focus on more attractive earnings growth, have stabilized its outlook.
DEA’s revised strategy aims for consistent annual growth in funds from operations, expanding its acquisition targets to include high-credit public and private entities. With a strong leasing record and a tenant base largely backed by U.S. government credit, the company plans to significantly increase its rental income over the next decade. Despite some challenges, such as limited lease expirations in the near term, these strategic shifts contribute to the Hold rating as the company navigates its path forward.
According to TipRanks, Kim is an analyst with an average return of -0.1% and a 44.98% success rate. Kim covers the Real Estate sector, focusing on stocks such as Boston Properties, Equity Residential, and Kilroy Realty.