UPDATE: Stifel Nicolaus Upgrades Parkway Properties to Hold
Stifel Nicolaus raises its rating on Parkway Properties (NYSE: PKY) to Hold from Sell on valuation grounds.
Stifel Nicolaus says, "We are upgrading Parkway to Hold from Sell as 1) PKY is attractively valued based on $106/SF of TEV relative to gross/adjusted replacement cost of $247/$198/SF for the SN projected portfolio as of 2Q12, 2) PKY is fairly valued at implied NOI/Cash Flow/CF less G&A cap rates of 9.6%/5.9%/3.3% based on SN 2Q12 projections, 3) trades at a 25%-34% discount to our Net Asset Value range of 8.0%-8.5%, 4) we tend to favor companies that are active asset recyclers."
PKY closed at $10.15 a share on Tuesday.
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