Boston Properties Downgraded at Stifel Nicolaus (BXP)

By Staff,

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Stifel Nicolaus reported on Thursday that they have reduced their rating for Real estate investment trust (REIT), Boston Properties, Inc.( BXP ).

The firm reported that they have downgraded BXP from a "Buy" to a "Hold," and has eliminated their $120 price target for the company.

An analyst from the firm commented, "we are downgrading to Hold as we think 2013 leasing market conditions will not necessarily favor high end product. Accordingly, we are decreasing our assumptions for development returns by 100-200 bps and our rental rates at rollover from plus 5% to flat. … Concerns include: 1) net asset value creation has been light for 2011-2012 as the share price has been in the $99-104 range at a 5% cap for seven quarters, 2) leasing in the high price points (over $70/sf gross rents) in the Gateway Cities has been soft and this is expected to continue."

Boston Properties shares were mostly flat during premarket trading Thursday. The stock is up 4.7% YTD.

The Bottom Line
Shares of Boston Properties ( BXP ) have a 2.49% dividend yield, based on last night's closing stock price of $104.27. The stock has technical support in the $99-$100 price area. If the shares can firm up, we see overhead resistance around the $110 price level.

Boston Properties, Inc.( BXP )is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: BXP

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