Stock Price & Analysis

Based on the analysis of Douglas Emmett Inc. (DEI), the stock has surpassed its average analyst target price, prompting considerations of potential overvaluation. Given the mixed analyst opinions and recent price trends, it may be prudent to hold or consider selling DEI stock at this time.

DEI stock is predicted to trade around $16.50-$18.00 in 2025, as mixed analyst sentiment and technical indicators suggest a sideways trend. The stock faces resistance at $18 due to mixed analyst opinions and current technical setup.

The S1 support level for DEI Stock is $16.28 ,The R1 resistant level for DEI Stock is $17.33.

As of the end of day on 2025-03-10, the price of DEI Stock was $16.8.

The target price for DEI Stock according to analyst rating is 18.39, with the highest price target at 21.00 and the lowest at 15.00. Analysts have a Hold rating on DEI Stock overall.

The market cap of DEI is $2.8B.

Analysis and Insights

Valuation Metrics

Douglas Emmett Inc (DEI) is trading at $17.67, slightly above the average analyst 12-month target price of $17.64. This suggests the stock has reached its target price, prompting analysts to consider adjustments.

Analyst Sentiment

Analysts are divided on DEI, with targets ranging from $12.50 to $21.00. Scotiabank maintains a Buy rating with a $21 target, while BMO Capital has a Sell rating, reflecting mixed sentiment.

Financial Performance

DEI reported Q4 FFO of $0.38, beating consensus estimates, but FY25 guidance of $1.42-$1.48 is below the $1.70 consensus, raising concerns about future growth.

Valuation Concerns

The stock's P/FFO ratio is elevated compared to historical levels, indicating potential overvaluation.

Conclusion

DEI appears overvalued due to mixed analyst sentiment, high valuation, and sector headwinds. Investors may consider profit-taking or reevaluating their position.

Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. The Company owns and operates office and multifamily properties located in premier coastal submarkets in Los Angeles and Honolulu. The Company's properties are located in the Beverly Hills, Brentwood, Burbank, Century City, Olympic Corridor, Santa Monica, Sherman Oaks/Encino, Warner Center/Woodland Hills and Westwood submarkets of Los Angeles County, California, and in Honolulu, Hawaii. The Company operates through two segments: the office segment and the multifamily segment. The Company's segments include the acquisition, development, ownership and management of office and multifamily real estate. The services of its office segment include primarily the rental of office space and other tenant services, including parking and storage space rental. The services of its multifamily segment include primarily the rental of apartments and other tenant services, including parking and storage space rental.

DEI stock is predicted to reach $25 by 2030, driven by improving market conditions and strong management execution. However, if economic headwinds persist, the price could stabilize around $18. The midpoint consensus target remains $21, reflecting balanced growth expectations.

DEI has a total of 750 employees.