SL Green Realty (NYSE:SLG) shares rose more than 3% intra-day today after the company received an upgrade from Evercore ISI, with analysts raising the stock to Outperform despite lowering the price target slightly to $73 from $74.

The firm cited a sharp 16% decline in SLG’s stock in 2025, which has underperformed both the office sector and the broader REIT index after a strong rally in 2024. This recent pullback, including a 7% drop last week, presents an attractive buying opportunity, according to Evercore, especially given solid leasing momentum in Q1 and upcoming catalysts.

SL Green currently trades at a 35% discount to Evercore’s estimated net asset value (NAV) and reflects a 7.6% implied cap rate, reinforcing undervalued fundamentals. The report also highlighted Midtown Manhattan’s resilience, with high-quality office space in premium submarkets like Park Avenue remaining in high demand despite broader industry challenges.

With leasing activity improving and strong asset positioning in a tight market, Evercore sees significant upside potential for SL Green in the coming months.