Price Target Increased On Federal Realty Investment Trust

Morgan Keegan published its research report today on Federal Realty Investment Trust FRT following 3Q10 results. FRT reported 3Q 2010 FFO/share of $0.95, which was $0.03 below Morgan Keegan's estimate and $0.02 lower than consensus. J.P. Morgan is raising their full-year 2010 FFO/share estimate by $0.01 (from $3.86 to $3.87), and they are reducing their full-year 2011 FFO/share estimate by $0.06 (from $4.06 to $4.00). The price target is up to $92.00 from $90.00. Morgan Keegan writes, "While the initial guidance for 2011 was below both our estimate and the Street consensus, we believe management is being very conservative with its assumptions. We remain cautious on the near-term outlook for retail in general, but we continue to think FRT can produce relatively strong results, and is deserving of its premium valuation. We have adjusted our PT to $92 and reiterate our Outperform rating on FRT shares." FRT closed Friday at $79.69.