Mizuho on Tuesday downgraded Boston Properties Inc. (NYSE:BXP) to Neutral from Outperform and lowered its 12-month price target to $62.00 from $79.00. The firm said the reduction in the price target reflected a lower applied multiple.
Previously, Mizuho had supported an Outperform rating on the office real estate investment trust on the view that the company would see growth from rising occupancies, and that its status as the most diversified office REIT - with exposure to a possible West Coast recovery - alongside a strong balance sheet, would support selective development initiatives.
In its revised view, Mizuho pointed to two specific factors now weighing on the stock: Boston Properties' position as the largest U.S. office REIT and its concentration in West Coast markets and the software sector. The analyst house said those attributes are negatives that will likely limit valuation multiples.
The shares are trading at $59.62, below Mizuho's new $62 target. InvestingPro analysis is referenced as indicating the company may still be undervalued based on a Fair Value assessment.
On several valuation and income metrics, Boston Properties currently trades at 10 times funds from operations; Mizuho's target multiple sits one times below current levels. The company's price-to-earnings ratio stands at 34.16 and it offers a 4.7% dividend yield. According to InvestingPro data, Boston Properties has paid dividends for 29 consecutive years.
Investors seeking deeper data are pointed to BXP’s Pro Research Report, which is available alongside coverage for 1,400+ other U.S. equities, as noted in the InvestingPro commentary cited in the coverage.
Earnings and market reaction
In other company-specific developments, Boston Properties reported fourth-quarter 2025 earnings per share of $1.56, well above the analysts' consensus forecast of $0.49 for the period. Despite the sizable beat, the stock declined in the latest trading session, reflecting mixed investor reactions to the results.
There were no recent reports of mergers or acquisitions involving Boston Properties. The coverage also states there have been no recent analyst upgrades or downgrades reported for the company.
Bottom line
Mizuho's decision to lower both its rating and price target is attributed primarily to a reduced applied multiple and to the firm's reassessment of how Boston Properties' scale and sector and geographic exposures may act as valuation headwinds.