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BMO Capital lowered the firm's price target on Douglas Emmett to $12 from $14 and keeps an Underperform rating on the shares. The company has the land to more than double its multifamily portfolio in LA and Hawaii over time, but with the likely departure of its largest tenant, Warner Bros Discovery, in Burbank next year, the firm is reducing its 2024 occupancy assumptions and 2024 estimates, the analyst tells investors in a research note. The stock is inexpensive and risks of default are low, BMO adds, though cutting its FY24 FFO view by 5c to $1.77.

BMO Capital analyst John Kim lowered the firm's price target on Douglas Emmett to $12 from $13 and keeps an Underperform rating on the shares after meeting with management. The firm believes the stock is "inexpensive" and risks of default are "low," but has reduced its 2024 occupancy assumptions and 2024 estimates, noting that 36% of Douglas Emmett's office leases are expiring in 2023-24.

Evercore ISI analyst Steve Sakwa lowered the firm's price target on Douglas Emmett to $16 from $17 and keeps an In Line rating on the shares. Based on Evercore's discussions with investors over the past few weeks, the number one question remains the health of the banking system and the availability of debt. REITs continue to have access to the unsecured bond market, but these institutions are not equipped to take back a significant amount of property, so "pretend and extend" may be "the name of the game," the firm says, adding that most lenders benefited from this method during the Great Financial Crisis. However, the office sector may be an area where this is not the case, as owners may not be willing to throw "good money" after bad as many face higher vacancy rates and cap ex requirements to re-tenant vacant space, Evercore ISI argues. Following the firm's NYC office tour conducted last week, Evercore has reduced its price targets across its office REIT stocks to reflect a more challenging leasing and lending environments.

Piper Sandler analyst Alexander Goldfarb lowered the firm's price target on Douglas Emmett to $13 from $18 and keeps a Neutral rating on the shares. The analyst says fear is driving "depressed valuations" in the office real estate investment trust sector as debt and equity buyers have become adverse to new investment. Sponsorship once again has taken prominence for transactions, while the absence of private equity stepping forward despite what seems like active yields "emphasizes the uncertainty that now exists," the analyst tells investors in a research note.