Goldman Sachs Downgrades AMB Property (AMB) To Conviction Sell

Goldman Sachs Group analysts Richard Ramsden, Brian Foran, Daniel Harris and Jessica Binder Graham downgraded shares of AMB Property Corporation

to Conviction Sell, down from the previous rating of Neutral. They also lowered the price target of AMB Property Corporation to $21 per share, down from the previous price target of $24. The analysts said they saw a 15% downside to shares of AMB Property Corporation and expected the stock to underperform other REITs over the next 3 to 6 months. The Goldman Sachs Group analysts wrote, "at 20X P/FFO, shares of AMB now trade at nearly a 60% premium to the company’s longterm average multiple (see Exhibit 35). We believe the valuation more than discounts the growth in lease-up of AMB’s development as well as future acquisition activity. In fact, AMB would need to grow FFO roughly 20% in each of the next three years to imply the long-term 13X multiple... Our model currently assumes less than two-thirds of that level."