UPDATE: Morgan Stanley Initiates UDR's Coverage at Equal-Weight

According to a research report published today, Morgan Stanley has initiated coverage on UDR, Inc. UDR at an Equal-Weight rating and $27 PT. In the report, Morgan Stanley commented, “UDR's transformed portfolio promises stronger NOI growth and a higher revenue beta. Management has spent nearly a decade transforming diffuse, B-quality apartment portfolio into an A/B+ portfolio concentrated in top bicoastal markets. We expect portfolio tweaking to continue, though the urgency is likely subsiding (75% is now concentrated in the West Coast & Northeast Corridor). FFO & dividend growth should accelerate in the next 12-24 months as the focus shifts away from non-core asset sales.” UDR closed Friday at $25.48.