UPDATE: Morgan Stanley Upgrades Biomed Realty Trust Following Investor Meetings
In a report published Tuesday, Morgan Stanley analyst Vance H. Edelson upgraded the rating on Biomed Realty Trust (NYSE: BMR) from Equal-Weight to Overweight, and named a $23.00 price target.
In the report, Morgan Stanley noted, “We recently hosted two days of investor meetings with top management readily addressing lingering concerns. Key topics boiled down to why the stock has been weak and what might drive value creation from here. Overall, we see a significant disconnect between BMR's stock performance and the robust nature of its tenants within Life Sciences. Multiple value drivers over the next 2-3 years. We see contractual, leveraged escalators of 3-4% as a foundation, boosted by: 1) an overall occupancy increase from 91% to at least 93%; 2) completion of existing development work that expands current square footage by 10%; 3) an additional one million square feet from utilizing a quarter of the land bank, expanding current square footage by another 7%; and 4) additional, accretive acquisitions.”
Biomed Realty Trust closed on Monday at $18.61.
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