Mizuho Raises Highwoods Props Target Price to $30.00, Maintains Neutral Rating

Mizuho Analyst Vikram Malhotra raised Highwoods Props' (HIW) price target from $29.00 to $30.00, a 3.45% increase, while maintaining a "Neutral" rating. The new target aligns with market expectations for continued growth, reflecting confidence in the company's future performance. The average target price from 9 analysts is $30.67, with a high estimate of $35.00 and a low estimate of $22.00, indicating a 2.86% downside from the current price of $31.57.

Mizuho Analyst Vikram Malhotra recently raised the price target for Highwoods Properties, Inc. (HIW) from $29.00 to $30.00, a 3.45% increase, while maintaining a "Neutral" rating. The new target aligns with market expectations for continued growth, reflecting confidence in the company's future performance. The average target price from nine analysts is $30.67, with a high estimate of $35.00 and a low estimate of $22.00, indicating a 2.86% downside from the current price of $31.57 [1].

Highwoods Properties has shown significant growth in recent quarters, with shares rallying 14.5% over the past three months compared to the industry’s rise of 5.5%. The company’s portfolio of premier office properties in high-growth Sun Belt markets is well-positioned to capitalize on tenants’ growing preference for office spaces with high-quality amenities. The increasing number of organizations emphasizing return-to-office mandates has driven demand for high-quality office spaces, boosting leasing activity [1].

Highwoods' aggressive capital-recycling program and healthy balance sheet have been key drivers of its financial flexibility. The company has completed buyouts worth $3.6 billion and dispositions totaling $3.0 billion from 2010 to 2024. The company expects to carry out additional acquisitions and dispositions amounting to up to $150 million each in 2025. Highwoods also maintains a robust development pipeline, with projects expected to generate considerable annual net operating income (NOI) upon completion [1].

Despite the positive outlook, Highwoods faces key risks, including competition from other developers and a significant development outlay. Additionally, the company’s debt burden adds to its concerns. Analysts recommend considering other REITs such as Digital Realty Trust (DLR) and SBA Communications (SBAC), which carry a Zacks Rank of #2 (Buy) [1].

In summary, Mizuho Analyst Vikram Malhotra's price target adjustment for Highwoods Properties, Inc. reflects market expectations for continued growth and confidence in the company's future performance. However, investors should be aware of the risks and consider other investment options within the REIT sector.

References:
[1] https://www.nasdaq.com/articles/highwoods-stock-145-three-months-will-trend-last