UPDATE: ISI Group Upgrades SL Green Realty to Buy

ISI Group has published a research report on SL Green Realty

and has upgraded the company from Hold to Buy as the company is creating value during a slow leasing environment. In the report, ISI Group writes, "We are upgrading SLG to Buy from Hold, and increasing our price target to $89 (up from $80), as we believe the company's portfolio and management team are likely to outperform the broader NYC market in 2012 due to creative investment opportunities coupled with a portfolio that is well positioned to take advantage of activity at lower price points. While we expect the NYC leasing market to remain sluggish in 2012, SLG's proactive approach to leasing and deal flow in the office, retail, and residential investments should allow the company to grow earnings faster than the Street expects (our 2013 FFO estimate is 6% above consensus and we assume another $250mn of equity and $300mn of free cahs flow after dividends over the next 7 quarters to fund net external growth)." ISI Group has also raised the price target from $80 to $89 on SL Green Realty, which is currently trading up $1.88 from yesterday's $78.61 closing price.