BXP price target raised to $77 from $67 at Truist

Truist raised the firm’s price target on BXP (BXP) to $77 from $67 and keeps a Hold rating on the shares. The firm notes credit spreads have narrowed across the office REIT sector and short-term interest rates are poised to come down, likely starting next month. Along with what Truist thinks are bottoming occupancies, this has helped lift office REIT stocks including BXP, which recently issued long-term debt at 5.75% and is up 25% in the past three months versus 16% for the VNQ and 6% for the S&P 500. The firm still thinks there is likely more upside in the cheapest names in the group, such as Piedmont Office Realty (PDM) and perhaps tactically Brandywine Realty (BDN), when interest rate cuts finally arrive.