City Office REIT Has a New Rating from Boenning & Scattergood

In a report released today, Merrill Ross from Boenning & Scattergood initiated coverage with a Buy rating on City Office REIT (NYSE: CIO) and a price target of $14.50. The company’s shares closed yesterday at $13.13.

Ross observed:

“We are initiating coverage of City Office REIT Inc. (CIO) with an Outperform rating and a $14.50 price target. CIO invests primarily in Class A office properties in mid-sized metropolitan areas that it believes have strong economic fundamentals, primarily in the southern and western United States. CIO has been disciplined in acquiring properties and has acquired 3 million square feet of office space (over $1 billion of cost) since its IPO in 2014 and divested three properties at internal rates of return that ranged from 17% to 51% and generated over $70 million of gains. Operating revenues increased to $113 million from $33 million, and the average annualized base rent per square foot increased by 32%.”

According to TipRanks.com, Ross is ranked #3847 out of 4836 analysts.

Currently, the analyst consensus on City Office REIT is a Moderate Buy with an average price target of $14, representing a 6.6% upside. In a report issued on June 27, RBC Capital also initiated coverage with a Buy rating on the stock with a $14 price target.

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Based on City Office REIT’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $47.06 million. In comparison, last year the company had a net profit of $10.06 million.

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City Office REIT, Inc. is a real estate investment trust. It focuses on acquiring, owning and operating office properties located primarily in metropolitan areas in the Southern and Western United States. The company was founded on November 26, 2013 and is headquartered in Vancouver, Canada.