Alexandria downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Alexandria Real Estate (ARE) to Market Perform from Outperform with a price target of $52, down from $65. The firm cites elevated dilution from the company’s asset sales and increased uncertainty on a demand recovery in life sciences for the downgrade. Alexandria’s asset sales are being overshadowed by higher interest rates and the “looming AI-threat” on lab office demand, the analyst tells investors in a research note. BMO favors companies with “solid earnings growth,” which it says is unlikely for Alexandria.