UPDATE: Cantor Fitzgerald Initiates Sell, $45.50 PT on Kilroy Realty

Cantor Fitzgerald initiates its coverage on Kilroy Realty

with a Sell rating and a price target of $45.50 a share as it believes the company's robust fundamentals are fully priced into the shares. Cantor Fitzgerald says, "We base our investment thesis on (1) robust fundamentals in the Northern California office market; (2) Bottoming Los Angeles and tepid San Diego office market recoveries against a modestly growing U.S. economic backdrop; and (3) Kilroy's local expertise in leasing and operations in its core markets, all offset by valuation we currently view as uncompelling. On a NAV per share basis, we value Kilroy at $262 per square foot. We also ascribe $477.7 million value to the Kilroy development pipeline." KRC closed at $45.87 a share yesterday.