The analyst sees the growth potential because Copt Defense (CDP) offers stable cash flows
COPT Defense Properties (NYSE: CDP) is one of the The least efficient data centers in 2025. The performance of its shares has been dull during this year and in the past year (-4%).
The company develops and operates secure data centers adapted to the workloads of national security, intelligence and cloud computing. Its portfolio is highly concentrated in critical locations at the mission near the Pentagon and the intelligence centers. This tenant base provides him with long -term stable leases with a low risk of vacancy, which in turn leads to predictable cash flows. However, overall growth is also limited due to the nature of high security facilities and considerably depends on the government budget.
A stable cash flow profile has enabled Copt Defense Properties (NYSE: CDP) to increase its dividend by almost 11% in the last three years. The stock currently offers a dividend return of more than 4%.
On September 11, during the Bofa Securities 2025 Global Real Estate Conference, the company stressed that, although it initially set a target of 400,000 square feet of vacancy stations for 2025, it had reached more than 350,000 square feet in the first half. With this, they have moderately increased their advice and are very confident in the supply of improved directives.
Following this presentation, JPMorgan analyst Anthony Paolone said that current consensus estimates seem conservative and have therefore modestly increased its estimates. Consequently, on September 17, he increased his share of action on action to $ 33, compared to $ 30. However, he maintained a neutral note.
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Read then: Goldman Sachs Value Stocks: 10 actions to buy And 14 Best actions of precious metals to buy now.
Disclosure: None. This article is initially published at Initiate monkey.
