Highwoods Properties price target lowered to $24 from $31 at Mizuho

Mizuho lowered the firm’s price target on Highwoods Properties to $24 from $31 and keeps a Neutral rating on the shares. The office real estate investment trust sector “screens somewhat fair on absolute valuation,” but risk premiums are still expensive given potential cyclical risks, the analyst tells investors in a research note. In addition, the firm’s work shows the sub-sector implies negative 8%-10% forward market rent growth, which it feels is likely too optimistic. By region, however, Mizuho still sees opportunities. It sees a better risk/reward on the West Coast.