Hold Rating for Boardwalk REIT Amidst Moderate Growth and Market Challenges

BMO Capital analyst Michael Markidis has maintained their neutral stance on BOWFF stock, giving a Hold rating on May 8.

Michael Markidis has given his Hold rating due to a combination of factors influencing Boardwalk REIT’s current and future performance. The company’s Q1/25 results showed moderate yet healthy revenue growth and effective expense management, which are positive indicators. However, the leasing spreads in Calgary and Edmonton are not expected to improve significantly in the near term due to supply factors, which could limit potential revenue growth.
Despite outperforming its Canadian multifamily peers in FFO growth over the past two years, there are concerns about slowing demand amidst elevated supply levels. Additionally, the potential for decelerating sequential revenue growth could pose challenges. These factors, combined with the impact of refinancing on the company’s financials, contribute to the Hold rating, as the market may not see substantial upside in the short term.

In another report released on May 8, CIBC also maintained a Hold rating on the stock with a C$80.00 price target.