Cantor Fitzgerald has increased its price target for COPT Defense Properties to $37.00 from $33.00 and reaffirmed an Overweight recommendation on the common shares. The firm pointed to several company-specific results and market dynamics that underpinned the change while leaving its fundamental view intact.
At the time of the analyst action, the stock was trading at $32.45, marginally below its 52-week peak of $32.67. External fair-value modeling referenced by market-data services indicates the share price is slightly rich relative to that model, yet sell-side analysts continue to express generally favorable views, reflected in a consensus rating of 1.75.
The research note highlighted the company’s recent operating performance. COPT reported full-year funds from operations of $2.72 per share, coming in $0.06 ahead of the guidance the company had established a year earlier. Management provided a 2026 FFO guidance range of $2.71 to $2.79, which Cantor Fitzgerald characterized as edging above prevailing street estimates. Those FFO outcomes are central to the firm’s valuation, which now assumes a 2026 estimated AFFO multiple of 18.6x.
Investors also have consistent income characteristics to consider. COPT is trading at a price-to-earnings ratio of 24.21 and yields 3.76% on its dividend, which the company has maintained for 34 consecutive years. Those metrics were noted as evidence of distribution durability alongside operational stability.
Leasing and development activity in the firm’s defense-focused portfolio supplied much of the bullish case. COPT secured another full-building lease of 148,000 square feet at its NBP campus and continues to see strong interest at the Redstone Gateway campus in Huntsville, a market where defense-related organizations including Missile Command and Space Command have concentrated activity. The research team described demand in Huntsville as a "high-class problem" - strong occupier interest coupled with the need to bring additional product to market - and observed only 10,000 square feet available on an operating portfolio totaling 2.4 million square feet.
Cantor Fitzgerald further pointed to broader budget dynamics as supportive of visible demand. The firm noted bipartisan backing for a defense spending increase of roughly 15% year-over-year, a trend that it said places COPT in a favorable spot given the secured and classified nature of many of its office assets.
On the most recent quarterly results, COPT’s fourth-quarter 2025 results matched consensus on earnings per share at $0.33 and exceeded revenue expectations, reporting $197.36 million versus $179.51 million anticipated by the market, a 9.94% revenue surprise. Analysts have commented on the company’s performance in recent notes, though the research roundup did not list any specific upgrades or downgrades tied directly to those comments.
Taken together, the combination of modest FFO outperformance, visible leasing momentum in critical defense markets and favorable public budget trends shaped Cantor Fitzgerald’s decision to lift its target and maintain an Overweight stance. Market participants tracking secured office demand and defense-related real estate activity will likely continue to weigh leasing progression and FFO/AFFO conversion as primary gauge points for cash flow and valuation moving forward.