UPDATE: Stifel Nicolaus Upgrades Cousins Properties to Buy

Stifel Nicolaus raises its rating on Cousins Properties (NYSE: CUZ) to Buy and establishes a price target of $7.20 on strategy and underlying portfolio value.

Stifel Nicolaus says, "We believe positives for Cousins are: (1) an attractive Implied NOI Cap Rate of 8.6% (2) the shares are trading at a 15%-21% discount to our new net asset value range of 7.0%-7.5%; (3) at $134/SF for the office portfolio, CUZ trades at 50%/30% discounts to our estimates of gross/adjusted replacement cost; (4) a stable balance sheet with liquidity provided by $400mm of retail asset sales, land sales and a mortgage on 191 Peachtree, (5) a strategy that makes sense, (6) smallish sub-$800mm equity base from which to add value."

CUZ closed at $7.20 a share yesterday.