Is Duke Realty set for a correction as the price surpasses analysts’ targets?

on Aug 10, 2022
  • Duke Realty stock trades at an above-analyst estimate price.
  • The company reported higher revenues and earnings.
  • Duke is a buy on a retracement.

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Duke Realty Corporation (NYSE:DRE) is up 11.22% in the past month. The gains could have attracted the attention of buyers but is the stock ready for another rise? 

DRE held an average “hold” rating from twelve analysts tracked by Marketbeat. Seven analysts had a hold rating, with four holding a buy recommendation. Analysts had an average price target of $61.40. The target is already reached as Duke stock currently trades at $63.68. 

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Elsewhere, Duke has a moderate buy rating by 9 Wall Street analysts over the past 3 months. The average price target for the stock is $59.63, still below the current price. 

On performance, Duke has been strong. The company reported Q2 core funds from operations of $0.48 per diluted share. The earnings came as expected and higher than $0.44 per share last year. Revenue came higher at $285.3 million, beating estimates of $279.8 million.

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DRE remains on a strong bullish momentum

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Source – TradingView

Technically, DRE is bullish after breaking above the $60 resistance. An RSI reading of 63 means that the stock is yet to hit the overbought region, but it is close.

We expect DRE to continue rising despite hitting the previous projections by analysts. The stock, however, is close to the resistance at $65. The level will likely coincide with overbought conditions and will be a double top for the stock. A correction is likely at $65, and we do not encourage a buy at the current level.

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Concluding thoughts

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Although DRE could rise further to $65, it faces a correction. Previous analysts’ projections have also been hit. Investors should consider buying at suitable support. The next support levels are $60 and $53.

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