The Globe and Mail reports in its Wednesday, March 18, edition that Industrial Alliance Securities analyst Brad Sturges, citing the potential for slower near-term leasing activity as a result of COVID-19, lowered his rating for Invesque on Tuesday to "hold" from "speculative buy," anticipating a delay in its adjusted funds from operations per share recovery. The Globe's David Leeder writes in the Eye On Equities column that Mr. Sturges lowered his share target by $2 (U.S.) to $5.25 (U.S.). Analysts on average target the shares at $6.52 (U.S.). Mr. Sturges says in a note: "We view Invesque's shares to be deeply undervalued relative to its estimated NAV, which may provide an extremely compelling buying opportunity if Invesque can successfully generate improved FD AFFO/share growth year-over-year. However, we believe that many investors continue to wait for Invesque to 'show me' better FD AFFO/unit growth metrics. Also, Invesque's above-average investment risk profile, and the potential for a negative near-term earnings impact from the COVID-19 virus outbreak may constrain any material recuperation in Invesque's depressed share price in the current market environment."
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