UPDATE: Morgan Keegan Raises PT on Lexington Realty Trust to $12 (LXP)

Morgan Keegan is out with its report today on Lexington Realty Trust LXP, raising its PT from $10 to $12. In a note to clients, Morgan Keegan writes, "As balance sheet improvement and accelerating growth prospects near, we believe further valuation expansion is justified. We are raising our price target from $10 to $12 per share. Our $12 price target is 12.8x our 2012 FFO estimate, and represents a forward implied cap. rate of 7.8%. We expect the combination of potential acceleration in FFO and dividend growth rates, portfolio improvements and delivering to support the valuation expansion." Morgan Keegan maintains Outperform on LXP. Shares of LXP closed Thursday at $9.35, up 0.43% from Wednesday's close.