Analyst Michael Markidis from BMO Capital reiterated a Hold rating on Boardwalk REIT (BOWFF – Research Report) and keeping the price target at C$73.00.
Michael Markidis has given his Hold rating due to a combination of factors impacting Boardwalk REIT’s market performance. Revenue growth has decelerated, reflecting a shift towards a more balanced market environment. The recent stabilization of occupancy through strategic pricing adjustments indicates that the company is in a position to potentially increase rents in the upcoming spring leasing period, yet the overall demand seems to be moderating.
Moreover, Boardwalk REIT’s financial performance has been robust, with its FFO growth surpassing that of its Canadian multifamily peers. However, concerns arise from the slowing demand amidst an elevated housing supply in key markets such as Calgary and Edmonton. Capital recycling efforts, including property dispositions and new acquisitions, suggest a cautious yet strategic approach to navigating current market conditions. These dynamics contribute to the decision to maintain a Hold rating, as future revenue growth may slow more rapidly than expected.
Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BOWFF in relation to earlier this year.