Jefferies Initiates Ramco-Gershenson With A Buy (RPT)

Jefferies & Co. is initiating coverage on shares of Ramco-Gershenson RPT with a Buy and a $15 price target on shares. In the research note sent to clients, Jefferies writes, "At current levels, RPT's stock is trading at a meaningful discount to the sector on a price-to-1-year forward FFO/sh multiple (12.6x for RPT vs. 15.0x for the Shopping Center REIT space). We believe that RPT has been trading at a discount relative to its peers due to its prior balance sheet issues. However, with 1) the balance sheet now in good shape and 2) key catalysts that should drive near-term earnings, we believe the valuation discount should close -- as the RPT story represents an attractive GARP play." Shares of RPT gained 2 cents yesterday to close at $12.80.