Peakstone Realty Trust upgraded to Buy from Hold at Truist

Truist analyst Anthony Hau upgraded Peakstone Realty Trust (PKST) to Buy from Hold with a price target of $19, up from $16. The firm views the shares as significantly mispriced. The market is valuing Peakstone’s suburban office portfolio at just $50 per square foot, implying a 47% cap rate, despite the portfolio being 99% leased with a weighted average lease term of 6.2 years, the analyst tells investors in a research note. Truist believes this “extreme discount “assumes a distressed outcome that is inconsistent with current leasing fundamentals and comparable transaction data.