Lots of stocks collapsed during the coronavirus pandemic. While some of them managed to recover, others still suffer heavy losses. Experts are hopeful that massive stimulus measures will help economies, and they will recover soon. The process has already begun. The stock market rallied on and off for the last few weeks. However, there is still danger of relapse, as the infections surge in the U.S. and some other countries also reported rising cases.
That’s why it’s a safer bet to choose a company that has already managed to weather the pandemic successfully. Alexandria Real Estate Equities is one of them. An investment trust with a unique niche, Alexandria is involved in the life-sciences industry. It owns and leases office and laboratory space used by research companies.
The stock’s quarterly earnings have been increasing consistently for the last two years. The coronavirus pandemic put a premium on both health and life sciences services. As a result, the company flourished even more during the pandemic.
Alexandria has a presence in several major U.S. research hubs, such as New York, Boston, San Diego, and Seattle. The stock has an impressive market cap of $24 billion, along with more than 41 million square feet of leasable space.
How is the company faring now?
Analysts expect the stock to show a 55% year-over-year earnings gain, mostly based on $253 million in revenue. Alexandria had missed the earnings forecast in the fourth quarter. But the firm matched it in the first quarter at $1.82 per share.
The company put 6.9 million shares of common stock on the market in the second quarter, for $160 per share. It also increased its dividend by 3 cents to $1.06 per share. The new dividend has a yield of 2.5%, along with a safe payout ratio of 49%.
Aaron Hecht, JMP Securities analyst, thinks that Alexandria is a Buy. He set the price target at $185, with a 10% upside potential in the coming 12 months.
Other analysts agree with Hecht, giving the company a strong-buy rating. The stock is currently selling for $168, but the average price target is $178.75, suggesting a 7% upside.