BMO Capital analyst Michael Markidis maintained a Hold rating on Nexus Real Estate Investment yesterday and set a price target of C$8.00.
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Michael Markidis has given his Hold rating due to a combination of factors concerning Nexus Real Estate Investment’s recent performance and market positioning. The company’s Q2/25 results aligned with expectations, demonstrating strong leasing performance and a positive outlook for SP-NOI growth. However, despite these positive indicators, Markidis notes that the relative valuation of Nexus Real Estate Investment is not sufficiently attractive when compared to larger Canadian industrial peers, especially when considering leverage neutrality.
Additionally, while Nexus has made strides in disposing of non-core properties and enhancing its capital structure, these improvements have not yet translated into a compelling investment case relative to its peers. The company’s progress towards an investment-grade status and its handling of lease renewals are commendable, yet these factors alone do not warrant a more bullish rating at this time. Thus, the Hold rating reflects a balanced view of the company’s achievements and the current market valuation challenges.
EFRTF’s price has also changed moderately for the past six months – from $5.040 to $5.650, which is a 12.10% increase.