Paramount Group downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Paramount Group (PGRE) to Underweight from Equal Weight with a price target of $3.25, down from $4. The firm’s proprietary AlphaWise job opening data across the REIT market suggest job openings are notably slowing, posing a headwind for office demand and multiples, the analyst tells investors in a research note. While the multiple discount of Office REITs relative to REIT peers is essentially back to all-time lows of -44% – the low point seen during COVID – there is room for further multiple contraction as the firm’s analysis shows that periods of declining job openings has historically been a headwind for multiples, Morgan Stanley added.