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Analyst Sees Growth Potential as COPT Defense (CDP) Delivers Steady Cash Flows

COPT Defense Properties (NYSE:CDP) is one of the worst-performing data center stocks in 2025. Its stock’s performance has been lacklustre throughout this year and over the past year (-4%).

The company develops and operates secure data centers tailored for national security, intelligence, and cloud computing workloads. Its portfolio is heavily concentrated in mission-critical locations near the Pentagon and intelligence hubs. This tenant base provides it with stable, long-term leases with low vacancy risk, which in turn result in predictable cash flows. However, overall growth is also limited due to the nature of high-security facilities and depends significantly on the government budget.

A stable cash flow profile has enabled COPT Defense Properties (NYSE:CDP) to increase its dividend by nearly 11% over the last three years. The stock currently offers a dividend yield of over 4%.

On September 11, at the BofA Securities 2025 Global Real Estate Conference, the company highlighted that, while it had initially set a goal of 400,000 square feet of vacancy leasing for 2025, it had achieved over 350,000 square feet in the first half. With that, they have raised their guidance modestly and are very confident in delivering on the upgraded guidance.

Following this presentation, JPMorgan analyst Anthony Paolone said that the current consensus estimates appear conservative, and thus modestly raised his estimates. As a result, on September 17, he raised his price target on the stock to $33 from $30. However, he maintained a Neutral rating.

While we acknowledge the potential of CDP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CDP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Goldman Sachs Value Stocks: 10 Stocks to Buy and 14 Best Precious Metals Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

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At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
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  • 140 Metas
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  • 65 Microsofts
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