Kilroy Realty, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst John Kim from BMO Capital maintained a Sell rating on the stock and has a $40.00 price target.
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John Kim has given his Sell rating due to a combination of factors impacting Kilroy Realty. Despite reporting a positive third quarter with an increase in funds from operations per share (FFOps) and an improvement in leasing activity, there are underlying concerns that warrant caution. The company’s occupancy rate has slightly declined, which could be a red flag for future revenue stability.
Additionally, while there was a guidance raise, a significant portion of this increase is attributed to non-cash adjustments, which may not reflect sustainable growth. The negative cash re-leasing spreads, although improved, remain a concern as they indicate potential challenges in achieving favorable lease terms. These factors combined suggest that the stock may face headwinds, justifying the Sell rating.
According to TipRanks, Kim is an analyst with an average return of -0.5% and a 46.57% success rate. Kim covers the Real Estate sector, focusing on stocks such as Plymouth Industrial Reit, BXP, and Rexford Industrial Realty.