Kilroy Realty (KRC): Evaluating Valuation After Recent Share Price Pullback
Kilroy Realty (KRC) shares have slipped over the past month, even as the real estate investment trust continues to generate steady revenue and maintain solid occupancy across its coastal office and life science portfolio.
See our latest analysis for Kilroy Realty.
At around $40.44, the recent pullback, including a negative 30 day share price return, sits against a modestly positive year to date share price gain and a solid three year total shareholder return. This suggests longer term momentum is holding even as near term sentiment cools.
If Kilroy’s blend of stability and selective growth has your attention, this is a good moment to also explore healthcare stocks that could benefit from similar long run demand drivers.
With steady revenue, modest growth, and a slight discount to analyst targets, Kilroy’s valuation looks finely balanced. The key question for investors is whether this represents an underappreciated entry point or whether the market is already pricing in its future growth.
Most Popular Narrative: 5.8% Undervalued
With Kilroy Realty closing at $40.44 against a narrative fair value of $42.93, the current price sits below what this framework implies.
The analysts have a consensus price target of $39.933 for Kilroy Realty 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 $55.0, and the most bearish reporting a price target of just $33.0.
It may seem counterintuitive that a business facing shrinking margins and lower future earnings still lands above today’s price. The answer lies in surprisingly resilient revenues and a bold profit multiple. Want to see which assumptions really carry this valuation story and how long they are expected to hold up?
Result: Fair Value of $42.93 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, upside risks remain if AI driven demand accelerates West Coast leasing or if Kilroy’s life science pivot delivers stronger rent growth than expected.
Find out about the key risks to this Kilroy Realty narrative.
Build Your Own Kilroy Realty Narrative
If the story outlined here does not quite fit your view, you can dive into the numbers yourself and craft a tailored narrative in minutes, Do it your way.
A great starting point for your Kilroy Realty research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.
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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.
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