Jefferies Initiates REG At Hold With A $39 PT

Jefferies has initiated coverage of Regency Centers Corp. REG with a Hold rating and $39/share 12-month price target. “While REG's high-quality, grocery-anchored portfolio strategy benefits from a consumer still focused on necessity-based shopping, we see a challenging outlook for the grocer business,” Jefferies writes. “In addition, pressure on rents and tenant move-outs suggest 2011 will be a transition year.” Regency Centers closed Tuesday at $41.58.