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    Alexandria Real Estate Equities (ARE) Valuation After Lawsuits, Guidance Cut, Dividend Reduction and Negative S&P Outlook

    Simply Wall St·12/25/2025 01:30:07
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    Alexandria Real Estate Equities (ARE) is back in the spotlight as multiple class action lawsuits, a sharp guidance reset, and an S&P outlook cut converge, forcing investors to reassess this beaten down life science REIT.

    See our latest analysis for Alexandria Real Estate Equities.

    All of this legal and ratings pressure has played out in the numbers, with Alexandria’s share price now at $48.76 after a roughly 50 percent year to date share price decline and an even steeper multi year total shareholder return slide. This suggests sentiment and momentum are still firmly under pressure despite the company’s long term campus strategy.

    If this kind of stress test in life science real estate has you reviewing your sector exposure, it could be a good moment to compare Alexandria against other healthcare stocks that may be navigating the cycle differently.

    With shares now trading at a steep discount to both analyst targets and some intrinsic value estimates, the key question is whether Alexandria is a mispriced turnaround story, or if markets are accurately bracing for weaker growth ahead.

    Most Popular Narrative Narrative: 22.7% Undervalued

    Compared with the last close at $48.76, the most followed narrative sees fair value closer to the low $60s, framing Alexandria as materially mispriced but still facing muted long term growth.

    The analysts have a consensus price target of $96.417 for Alexandria Real Estate Equities based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $144.0, and the most bearish reporting a price target of just $71.0.

    Read the complete narrative.

    Want to see what kind of shrinking revenues can still justify an upside case like that? The narrative leans heavily on a profitability rebound and a surprisingly rich future earnings multiple. Curious how those moving parts combine into a higher fair value despite negative top line trends? Dive in to unpack the full valuation playbook behind this call.

    Result: Fair Value of $63.08 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, sustained biotech funding weakness and prolonged high rates could further slow leasing, pressure occupancy, and undercut the assumed earnings rebound behind this upside case.

    Find out about the key risks to this Alexandria Real Estate Equities narrative.

    Build Your Own Alexandria Real Estate Equities Narrative

    If the conclusions here do not quite fit your view, or you would rather dig into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way

    A great starting point for your Alexandria Real Estate Equities research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    Do not stop with a single turnaround story. Use the Simply Wall St Screener to pinpoint focused opportunities that match your risk profile and return goals.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.