Jefferies has increased its price target on Cousins Properties (NYSE:CUZ) to $27.00 from $26.00 while keeping a Hold recommendation on the real estate investment trust. The new target implies modest upside from the company’s recent market price of $25.33 and remains short of the analyst high target of $35.00.
The broker highlighted several operational and financial datapoints to justify the adjustment. In the fourth quarter, Cousins executed roughly 700,000 square feet of leasing - its second-largest quarterly leasing total over the past four years - a level of activity Jefferies said underpins the company’s expansion in top-line revenue. That leasing performance has coincided with 15.42% revenue growth over the most recent twelve-month period.
Market metrics cited alongside the note show the shares trade at a price-to-earnings ratio of 106, a figure noted as materially above sector averages. InvestingPro data referenced in the note also indicates the company has maintained dividend payments for 47 consecutive years, and the stock carries a current dividend yield of 5.05%.
Management reiterated a target to surpass 90% occupancy by the end of 2026, but Jefferies flagged the timing of lease commencements as a pivotal variable in achieving that goal. The research note emphasized that when signed leases actually commence will materially influence occupancy metrics and near-term cash flow.
The firm also discussed Cousins’ recent portfolio moves and development plans. After completing the acquisition of 300 S Tryon, the company conveyed a willingness to increase leverage to pursue particularly attractive investment opportunities. Cousins is seeking a new development start in late 2026 or 2027, aiming for roughly 50% pre-leasing on that project and projecting incremental yields 150 to 200 basis points above stabilized cap rates - which the company equated to an implied yield range near 8.5% to 9%.
On the quarterly results front, Cousins reported fourth-quarter 2025 earnings that fell short of consensus on the bottom line but beat on revenue. The company posted earnings per share of -$0.02 versus an expected $0.07, while revenue came in at $255 million compared with a $250 million forecast. The mixed results underscore the current financial profile investors and analysts must weigh.
Jefferies’ note did not coincide with any reported analyst upgrades or downgrades for Cousins. Close attention remains on how management balances leasing execution, development timing and capital structure decisions as the company works through the occupancy and earnings dynamics detailed above.
Key points
- Jefferies raised its price target on Cousins to $27 from $26 and maintained a Hold rating.
- Strong leasing in Q4 - about 700,000 square feet - helped drive 15.42% revenue growth over the past year.
- Company posted Q4 2025 EPS of -$0.02 (miss) and revenue of $255M (beat); shares trade at a P/E of 106 and carry a 5.05% yield.
Risks and uncertainties
- Timing of lease commencements - the schedule of when signed leases begin will affect occupancy and near-term cash flow, impacting the real estate sector exposure.
- Leverage strategy - management’s willingness to take on additional debt following the 300 S Tryon acquisition poses balance sheet and financing risks for the company and the broader REIT sector.
- Mixed quarterly results - the EPS miss combined with a revenue beat creates uncertainty about earnings stability and investor sentiment in the equity markets.