NEW YORK (TheStreet) -- Shares of Boston Properties (BXP) are down, slightly lower by 0.18% to $127.68 in early market trading Thursday, after the self-administered and self-managed real estate investment trust was downgraded to "neutral" from "outperform" by analysts at Robert W. Baird this morning.
Analysts at RW Baird cited valuation for its cut in rating, and set a price target of $128 on shares.
Boston Properties is a fully integrated REIT that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class-A office, industrial and hotel properties, operating in Boston, midtown Manhattan, Washington, D.C. and San Francisco.
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Separately, TheStreet Ratings team rates BOSTON PROPERTIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BOSTON PROPERTIES INC (BXP) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 72.91% and other important driving factors, this stock has surged by 26.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BXP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 35.50% is the gross profit margin for BOSTON PROPERTIES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 20.81% trails the industry average.
- BOSTON PROPERTIES 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BOSTON PROPERTIES INC increased its bottom line by earning $4.02 versus $1.65 in the prior year. For the next year, the market is expecting a contraction of 52.9% in earnings ($1.90 versus $4.02).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has decreased by 16.1% when compared to the same quarter one year ago, dropping from $155.32 million to $130.37 million.
- You can view the full analysis from the report here: BXP Ratings Report