Wunderlich Securities Initiates Coverage On BRE

Wunderlich Securites is initiating coverage on BRE Properties BRE with a Buy rating and a price target set at $54. Says Wunderlich, in its report, “We are initiating coverage of BRE Properties, Inc. (BRE) with a Buy rating and a $54 price target on the shares. We believe the company's equity raise could allow it to acquire properties in its core markets and drive above-average growth. Specifically, we believe the company can acquire about $650 million of properties between 6% and 6.25% cap rates, expanding its previous acquisition program sized at $155 million. The company has not revised guidance after its capital raise, but we believe our estimates are conservative. Annualizing projected 4Q11 NOI and applying a 4.75% cap rate, we set a price target of $54 per share.” BRE closed yesterday at $49.52.