VNO - Boston Properties upgraded to Buy even as Mizuho gets bearish on office REITs

In reassessing the office REIT space, Mizuho analyst Vikram Malhotra upgraded Boston Properties (NYSE:BXP) to Buy from Neutral as it's "relatively better skewed than other office REITs," according to a note issued on Friday. The analyst sees minimal execution risk and upside for occupancy in 2022 for BXP. "We also see the potential for higher pre-leased rates at the company's development properties," Malhotra wrote in a note to clients. BXP now replaces Kilroy Realty (KRC), also rated Buy, as his top pick in office REITs. Boston Properties (BXP) stock rises 0.7% in Friday premarket trading. For the sector overall, he's turning more bearish compared with his previous tactically bullish view, giving it an Underperform rating. Office REITs have outperformed YTD with investor optimism on return to work and improving fundaments. "We see two underappreciated risks — the longer-term impact from remote work and a potential economic slowdown amid weak Office

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Boston Properties upgraded to Buy, even as Mizuho gets bearish on office REITs