As previously reported, Morgan Stanley analyst Vikram Malhotra downgraded Office Properties to Underweight from Equal Weight with an unchanged price target of $27. Recent strength in the shares has been partly driven by hopes of a portfolio transformation, but cycling into higher quality assets may be "elongated and dilutive," Malhotra tells investors. While the majority of the company's planned asset sales have been done, Malhotra still sees pricing risk for the remaining dispositions. He also cites the amount of capital chasing higher quality assets and Office Properties' elevated cost of capital as reasons for his caution around the perceived transformation.