Alexandria Real Estate price target lowered to $144 from $186 at BTIG

BTIG lowered the firm’s price target on Alexandria Real Estate (ARE) to $144 from $186 and keeps a Buy rating on the shares. The firm notes that the late 2024 – early 2025 vacancies, especially in Cambridge and Mission Bay, along with tepid demand growth despite a rebound in capital formation across the life science industry, are suggest that the REIT may face more headwinds before a sustained recovery in fundamentals, the analyst tells investors in a research note. The company’s Investor Day is expected to focus on its mega campus strategy, a move that should reinforce value creation over the long-term, but could also drag on near-term earnings due to the timing mismatch between asset sales and redeployment of capital back into core clusters, the firm added.