UPDATE: Goldman Sachs Initiates Campus Crest Communities at Neutral (CCG)

Goldman Sachs is out with its report today on Campus Crest Communities

, initiating coverage on CCG at Neutral. In a note to clients, Goldman Sachs writes, "We initiate coverage of small-cap student housing REIT Campus Crest Communities, Inc. with a Neutral rating and 12-month target price of $12, indicating a total return of 19%, including the 6.0% dividend yield. We arrive at our TP based on our forward NAV estimate of $12 assuming a 7.25% cap rate. We believe that downside risk is limited based on our positive outlook for the student housing industry, 2011/12 pre-leasing velocity, and valuation. That being said, we remain on the sidelines for now following poor initial execution, and believe the company has 1-3 quarters to prove its business model and restore investor confidence." Shares of CCG closed Thursday at $10.71, up 0.47% from Wednesday's close.