Boston, Massachusetts-based BXP, Inc. (BXP) is the largest publicly traded developer, owner, and manager of premier workplaces. Valued at $12.1 billion by market cap, the company operates as a real estate investment trust (REIT), including properties owned by joint ventures totaling 53.5 million square feet and 186 properties.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and BXP perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - office industry. BXP excels with its high-quality properties in prime markets, achieving strong occupancy rates and commanding premium rents due to its reputation as a top landlord for creditworthy clients.
Despite its notable strength, BXP slipped 16.3% from its 52-week high of $90.11, achieved on Oct. 18, 2024. Over the past three months, BXP stock gained 7.3%, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 1.6% losses during the same time frame.
In the longer term, shares of BXP rose 1.5% on a YTD basis but dipped 8.5% over the past 52 weeks, underperforming XLRE’s YTD gains of 2.2% and 7.3% drop over the last year.
To confirm the bullish trend, BXP has been trading above its 50-day and 200-day moving averages since late August.
On Jul. 29, BXP reported its Q2 results, and its shares tumbled 8.4% in the following three trading sessions. Its FFO per share of $1.71 surpassed Wall Street expectations of $1.67. The company’s revenue totaled $868.5 million, representing a 2.1% year-over-year increase. BXP expects full-year FFO to be between $6.84 and $6.92 per share.
In the competitive arena of REIT - office, SL Green Realty Corp. (SLG) has lagged behind the stock, with 10.2% losses on a YTD basis and a 14.7% fall over the past 52 weeks.
Wall Street analysts are reasonably bullish on BXP’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and the mean price target of $77.47 suggests a potential upside of 2.7% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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