Wunderlich Securities Puts Buy and PT of $12 on Preferred Apartment Communities (APTS)

Wunderlich Securities initiated its coverage of Preferred Apartment Communities

. In a research report published today, Wunderlich put its rating on Preferred Apartment at Buy, while at the same time setting its price target at $12. In the report, Wunderlich states, "We are initiating coverage of Preferred Apartment Communities (

) with a Buy rating and $12 price target on the shares. We expect management's strategy of acquiring properties at attractive valuations, then rebranding and upgrading them, will drive rental rate increases. Currently, the stock of this small market capitalization company trades at a significant discount to peers on a dividend and cap rate basis. If management executes against its strategic plan to incrementally grow the balance sheet with a balance of equity and debt, we expect the stock's valuation to move more in line with peers." In today's trading, Preferred Apartment added 0.43% to its value and is currently standing at $9.25.