BAML goes contrarian, upgrades Boston Properties

|About: Boston Properties, Inc. (BXP)|By:, SA News Editor

Who wants a REIT in this rising rate environment, and more so a big-city office REIT given some oversaturated coastal markets.

BMAL's Jeffrey Spector does, upgrading Boston Properties (NYSE:BXP) to Buy with $145 price target, or a whopping 26% upside.

Spector doesn't see rising rates as a huge threat to earnings given minimal floating-rate debt exposure. The company does have some sizable refinancings coming up in 2019, but rates would have to be another 150 basis points higher for that to be FFO-dilutive.

The team is also bullish on West Coast markets after a tour last month, and - while not calling for immediate improvement in NYC - is constructive on that town as well.

Source: Bloomberg

BXP is down 11% YTD.

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