On Monday, analysts at Stifel upgraded shares of Corporate Office Properties Trust OFC from Hold to Buy with a $35 price target.
Analyst John Guinee finds the company’s recent 11.25 megawatt lease should add $14 million of net operating income in 2016, “while incurring a modest $50 million of incremental leasing costs.”
Guinee wrote, “As we valued the asset at 50% of book value for years as it sat mostly vacant, the incremental improvement to our estimate of Net asset Value is roughly $.40/sh.”
Other positives include bottoming of the company’s funds from operations (FFO), a dependable development pipeline and a rising U.S. cyber security budget.
Shares of Corporate Office Properties Trust recently traded at $30.40, up 1.2 percent.
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