Goldman Sachs analyst Caitlin Burrows has maintained their neutral stance on KRC stock, giving a Hold rating on March 17.
Caitlin Burrows has given her Hold rating due to a combination of factors impacting Kilroy Realty. The primary concern is the weaker demand for office spaces on the West Coast, particularly in San Francisco, which has not yet recovered to pre-pandemic levels. This has resulted in a high availability of office spaces, including sublease options, which poses a challenge for Kilroy Realty in achieving better occupancy rates.
Furthermore, the forecasted growth for Kilroy Realty’s core funds from operations (FFO) is expected to decline in the coming years, with estimates falling below consensus expectations. This anticipated underperformance in the near term contributes to the Hold rating, as significant improvements in demand are not expected soon, making it difficult for the company to outperform in the current market conditions.
In another report released on March 17, BMO Capital also maintained a Hold rating on the stock with a $37.00 price target.