COPT defense properties face risks: The analyst sees uncertainty in the leasing process amid the risk of budget reduction – defense defense (NYSE: CDP)

Jp Morgan Analyst Anthony Paulon maintained the neutral classification COPT defense properties CDPReducing price expectations to $ 29 from $ 31.

The analyst suggests that although the implementation of business administration and trends in Copt Defeense Properties provides a good vision of expected growth, some of the emerging risks have been identified.

The most important risks are associated with DOGE, as any possible reduction in the budget of the Ministry of Defense or Changes in Contract Awards by the federal government can slow down the process of leasing in defense real estate. However, Paulon finds that it is unlikely the basic tasks supported by the Copt Defeense Properties, such as cybersecurity and critical driving functions, suddenly less important, although the method that is allocated can change.

Also read: Victoria Secret’s criticism of progress, but there are still challenges: the analyst reduces expectations

The analyst writes, that there are some expectations surrounding the Huntsville market at COPT Defeense Properties that are likely to give the leadership of Space HQ, which has not yet occurred.

If another region becomes a competitor to the matter, it may reduce the demand for construction projects to the lawsuit.

In addition, the analyst notes that a major part of the company’s future development growth includes the Data Center for AWS DVD DVD, Iowa.

However, if the company is not able to secure energy or decide the tenant to move forward at a slower pace, it may affect the pipeline.

Finally, the analyst states that although Copt Defeense Properties plans to sell regional offices, these sales may be reduced for profit growth and are not included in multi -year FFO CAGR forecast.

Price work: CDP shares closed 1.26 % less to $ 26.67 on Thursday.

Read after that:

Image via an image on the floor on Shutterstock.