Jefferies has raised its 12-month price target on COPT Defense Properties (NYSE: CDP) to $34.00 from $33.00 and left its rating at Buy. The new target implies roughly 12% upside from a trading price of $30.37, with the shares positioned close to their 52-week high of $31.24.
The adjustment to the firm’s model stems from a revision to capital commitment timing tied to an Iowa data center project. Jefferies pushed its fiscal year 2026 funds from operations (FFO) per share estimate down by one cent to $2.74, a level the firm notes aligns with consensus estimates. Jefferies attributes the modest FY26 reduction to the capital commitment timeline for the Iowa project being further out than previously assumed in its projections.
Despite the slight trim to FY26 FFO per share, Jefferies preserved its Buy rating and raised the price target by $1. In parallel commentary, reference data show COPT Defense Properties offers a 4.02% dividend yield and has maintained dividend distributions for 34 consecutive years. The company is trading modestly above its Fair Value estimate according to the same data set, which also reports a price-to-earnings ratio of 22.99 that is described as elevated relative to near-term earnings growth expectations.
Recent operational developments reported by the company reflect active leasing and capital deployment. COPT surpassed its 2025 vacancy leasing target by 11% after completing 557,000 square feet of leasing, exceeding its final projection by 57,000 square feet. The company has also executed a build-to-suit lease with a Fortune 100 tenant for a 132,000-square-foot high-security facility in San Antonio, Texas, representing an $88 million capital commitment.
Another build-to-suit agreement has been signed with the University of Maryland’s Applied Research Laboratory for Intelligence and Security for a new facility in College Park, Maryland, with construction scheduled to begin in 2026. These transactions underline continuing demand for specialized, high-security and research-oriented space within COPT’s portfolio.
On the research front, Truist Securities raised its price target for COPT to $31.00 while retaining a Hold rating, citing the company’s strong fundamentals. Truist’s note appears against a backdrop of upcoming lease expirations, with approximately 14% of total lease revenue scheduled to expire in the fourth quarter of 2025, a factor investors and analysts will likely monitor as renewal activity unfolds.
The company also announced the passing of its former CEO, Roger A. Waesche, Jr., recognizing his role in shaping the firm’s strategic course.
Taken together, the analyst actions, dividend profile, leasing achievements and signed build-to-suit commitments present a mix of supportive fundamentals and identifiable near-term considerations. The model tweak from Jefferies is narrow in magnitude but highlights the sensitivity of near-term FFO to the timing of capital deployments on development projects.
Note: The article presents analyst estimates, dividend metrics and leasing information reported by the company and third-party data referenced in analyst reports.