Evercore ISI lowered its price target on Alexandria Real Estate Equities (NYSE: ARE) to $72 from $74, while reaffirming an Outperform rating.
The firm said Alexandria was set to host its annual investor day on December 3, an event that typically includes forward-year guidance and detailed underlying assumptions. Evercore noted that preliminary guidance filed via an 8-K in late October suggested that management would likely discuss additional trends shaping its 2026 outlook.
Weak fundamentals in the lab space, strained capital markets for life sciences and biotech firms, and deteriorating portfolio metrics collectively weighed on the stock throughout 2025, the analyst said. Shares were down nearly 50% year-to-date, pushing the dividend yield to roughly 10%.
Evercore slightly reduced its 2026 FFO forecast to $6.52 from $6.55, while its 2027 estimate declined to $7.05 from $7.36, driven by lower starting cash rents and higher operating costs. The lowered estimates resulted in the modest price-target reduction. However, Evercore kept its Outperform rating, citing low expectations ahead of investor day and an attractive valuation, with the stock trading at just 9.5x its new 2027 AFFO estimate versus a REIT sector average of 19.6x.
