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Research Alert: CFRA Lowers Opinion On Real Estate To Underweight From Marketweight
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Research Alert: CFRA Lowers Opinion On Real Estate To Underweight From Marketweight
Oct 8, 2025 11:44 AM

02:20 PM EDT, 10/08/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We are lowering our opinion on the Real Estate sector to underweight given its vulnerability to potential disappointment if Fed rate cuts prove less aggressive than market expectations, combined with ongoing fundamental challenges in key commercial real estate segments. Rising construction and labor costs, persistent work-from-home trends hurting office revenue, and reduced travel expenditure expectations are likely to continue into 2026. The sector's recent underperformance and technical weakness suggest investors should look at other defensive sectors that may offer better protection in a changing rate environment. Finally, the sector carries a negative relative rating on cap-weighted STARS, target price differential, and price momentum.

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