Douglas Emmett downgraded to Neutral at Janney on ‘higher-for-longer’ rates

As previously reported, Janney Montgomery Scott analyst Robert Stevenson downgraded Douglas Emmett (DEI) to Neutral from Buy with an $18.50 fair value estimate. While the firm remains positive on Douglas Emmett’s business model and management team, it believes “higher-for-longer” interest rates, as well as tenant headwinds, are unlikely to result in the near-term outperformance for the stock. The firm’s change in rating “for the time being” was part of its larger REIT group rebalancing, the analyst noted.