In a report published Thursday, Bank of America analyst Craig Schmidt upgraded the rating on Regency Centers Corp REG from Neutral to Buy, and raised the price target from $62.00 to $67.00.
In the report, Bank of America noted, “We are upgrading Regency Centers (REG) to Buy from Neutral based on its attractive valuation, accelerating core fundamentals and quality of its development pipeline. We are positive on REG's development projects currently under construction (average household density per square mile exceeds 1,300) and believe REG's competitive advantage and experience in the development area become more valuable in an improving macro environment. We are increasing our PO for REG to $67 from $62 based on higher NOI estimates, and we forecast +3.5% SS NOI growth in ‘15. We apply a 5.6% cap rate to our forward NOI estimate of $478M. We now apply a 2.5% premium to our forward NAV to derive our PO to reflect REG's development skills and its low levered balance sheet. Combining price appreciation with distribution rate, we estimate a 10.9% total return.”
Regency Centers closed on Wednesday at $62.14.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in