Market Overview

Cousins Property Rating Lowered To Neutral By Baird Due To Houston Headwinds

Share:

Baird’s David Rodgers downgraded Cousins Properties  (NYSE: CUZ) from Buy to Neutral while reiterating the company's $11.00 price target.

The analyst’s rating cut reflected a forecasted negative trend in Class A Houston rent prices. At the same time, concessions were rising and availability was growing, posing a threat to Cousin shares.

“Improved leasing for CUZ during 2Q16 was encouraging but the current headwinds in Houston present a sizable challenge to improved valuation in our view,” stated Rodgers.

The analyst appreciated Cousins Property’s strong earnings report in late July.

“After several quarters of declining leasing relative to total availability, CUZ was able to reverse that trend during 2Q16 with leasing that once again approached the eight-quarter trend,” stated Rodgers.

Rodgers, however, was dissatisfied with the company’s announcement regarding their plan to avoid Florida markets given the “difficulty in gaining scale and finding the right opportunities” Rodgers believed Florida could have been used as a “source of proceeds to deleverage the post-merger Cousins” once its transactions closed.

Overall, Rodgers expected potential downside to continue until Cousins Properties finishes its Houston property spinoff.

Latest Ratings for CUZ

DateFirmActionFromTo
Sep 2018MaintainsBuyBuy
Dec 2017UpgradesNeutralBuy
Oct 2017MaintainsNeutral

View More Analyst Ratings for CUZ
View the Latest Analyst Ratings

Posted-In: Analyst Color Price Target Reiteration Analyst Ratings

 

Related Articles (CUZ)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WUBABOCOM InternationalDowngrades
DLTROTR GlobalUpgrades
ARCCCompass PointDowngrades
GTYHCitiInitiates Coverage On7.0
NKEGuggenheimMaintains100.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

The Future Of Gambling: VR Casinos And Online Bookies

Trading Alert: Collegium Pharmaceuticals May See Increased Activity Thursday