UPDATE: Deutsche Bank Raises PT on Developers Diversified to $17 (DDR)

Deutsche Bank is out with its report today on Developers Diversified DDR, raising its PT from $16 to $17. In a note to clients, Deutsche Bank writes, "With cap rates continuing to compress and Prime assets growing as a percent of total NOI, we are lowering our cap rate assumption for DDR to 7.3% from 7.5%. Our TP is based on a 10% premium to our forward NAV estimate in 2Q12 at a 7.3% cap rate. Key risks to our estimates will primarily be driven by the absolute size, timing and pricing of capital raising efforts that we have assumed in our forward estimates as DDR continues to reduce its non-core asset portfolio, de-lever the balance sheet, and addresses near-term funding needs." Deutsche Bank maintains Buy on DDR. Shares of DDR closed Monday at $14.66, down 0.54% from Friday's close.