Goldman Sachs Initiates ARE Coverage; Buy-Rated, $77 PT

Goldman Sachs is initiating coverage of mid-cap life science REIT Alexandria Real Estate Equities ARE with a Buy rating and 12-month target price of $77, indicating a total return of 13.6%, including the 2.6% dividend yield. “We arrive at our target price by assuming a premium to our forward NAV estimate of $70, given ARE's stable cash flows and top-tier assets clustered in barrier-to-entry markets,” Goldman Sachs writes. “In short, Alexandria has one of the highest quality portfolios in the REIT industry with an above-average near-term growth profile.” Alexandria Real Estate Equities closed Tuesday at $69.43.