UPDATE: Goldman Sachs Upgrades Post Properties to Buy, PT is $45

Goldman Sachs increases its rating on Post Properties PPS to Buy from Neutral as it believes its valuation is heavily discounted. Price target for the stock is at $45 per share. Goldman says, “PPS trades at an implied cap rate of 6.0% or a 150 bp discount to class A transactions (4.5% cap rate) despite having, on average, rents over 50% higher than submarket averages. Thus, at current valuation, we believe the market is valuing the company's Class portfolio at a Class B price. The discount also comes despite the substantial progress the company has made reducing leverage and overhead costs and rebuilding its development pipeline.” PPS closed at $39.90 per share on Tuesday.