NEW YORK (TheStreet) -- Shares of Corporate Office Properties Trust (OFC) are up 1.09% to $28.71 after Capital One Financial (COF) initiated coverage on the office real estate investment trust with an "overweight" rating and a $33 price target.
The firm's price objective indicates a potential upside of 16.20% from the company's current price.
TheStreet Ratings team rates CORP OFFICE PPTYS TR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORP OFFICE PPTYS TR INC (OFC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- CORP OFFICE PPTYS TR INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CORP OFFICE PPTYS TR INC turned its bottom line around by earning $0.24 versus -$0.21 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus $0.24).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, CORP OFFICE PPTYS TR INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for CORP OFFICE PPTYS TR INC is rather low; currently it is at 23.45%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.59% significantly trails the industry average.
- You can view the full analysis from the report here: OFC Ratings Report