Highwoods Properties downgraded to Hold from Buy at Jefferies

Jefferies downgraded Highwoods Properties (HIW) to Hold from Buy with a price target of $30, down from $34. The firm adjusted ratings in the real estate investment trust space following a transfer of coverage. Artificial intelligence is the key theme shaping future office demand, and REITs with exposure to traditional gateway markets present the most attractive risk/reward, the analyst tells investors in a research note. Jefferies believes gateway office markets like San Francisco, New York City, Seattle and Boston are capturing outsized growth from AI jobs.