Cousins Properties (CUZ) Stock Forecast & Price Target

Cousins Properties Inc. is poised for growth, as evidenced by an anticipated increase in core occupancy and net effective rents, driven by robust leasing activity and minimal lease expirations. Additionally, the company's funds from operations (FFO) estimates for 2025 have been revised upward to $2.84 per share, benefiting from a recent acquisition in Dallas and an optimistic projection for cash returns. The potential for ongoing population and job growth in the key markets of the Southern United States, along with opportunities for existing leases, presents further upside for Cousins Properties' performance.

Cousins Properties Inc. is expected to see a decline in occupancy rates, projecting 89.2% at year-end 2025, down from 90.1% at the end of Q2 2025, primarily due to the departure of a significant tenant, Bank of America. The company's fundamental outlook is compounded by slumping national job growth, leading to a reduction in target price based on P/FFO and P/NAV metrics. Additionally, the potential for a recession poses a significant risk, as it could further decrease office employment and increase tenant moves towards remote work, ultimately reducing their need for office space.