Alexandria Real Estate stock price target raised to $91 by Evercore ISI

Alexandria Real Estate (ARE) reported a mixed Q2 2025, posting a net loss but exceeding revenue forecasts, which garnered a positive market reaction. Following these results, Evercore ISI raised its price target to $91 and its 2025 FFO estimate, citing potentially peaking headwinds, yet concurrently slashed its 2026 FFO projection by 6% to $8.35, significantly below consensus. This creates a complex near-term outlook for ARE, balancing current revenue strength and analyst optimism for 2025 against a sharply reduced long-term forecast.

Analysis

Alexandria Real Estate (ARE) presented a mixed financial picture for its second quarter of 2025, beating consensus on funds from operations (FFO) with $2.33 per share and on revenue with $762 million, yet reporting a significant net loss with an EPS of -$0.64 against expectations of a $0.59 profit. In response, Evercore ISI raised its price target to $91.00, citing that fundamental headwinds may have peaked. However, this near-term optimism is sharply contrasted by Evercore's forward estimates. While the firm nominally increased its 2025 FFO forecast to $9.24, it simultaneously slashed its 2026 FFO estimate by 6% to $8.35, a figure noted to be "well below consensus." This creates a significant divergence between the company's current operational performance, which drove a positive market reaction, and a concerning long-term earnings outlook from a key analyst, especially given the stock's current 6.54% dividend yield.

Key Decisions for Investors

• Investors should weigh the near-term positives, such as the Q2 FFO beat and Evercore's raised price target of $91, against the significant risk implied by the firm's 6% cut to its 2026 FFO estimate.
• For income-focused investors, the 6.54% dividend yield appears attractive, but its sustainability should be evaluated in the context of the projected decline in 2026 FFO.
• Monitor future analyst reports and company guidance closely to determine if Evercore's pessimistic 2026 outlook becomes a consensus view, which would materially alter the stock's long-term investment thesis.