UPDATE: Wunderlich Securities Upgrades Post Properties to Buy; Earnings Traction
Wunderlich Securities upgrades its rating on Post Properties (NYSE: PPS) from Hold to Buy and raises its price target from $47 to $58 as the company sees traction in earnings for Q1.
Wunderlich Securities says, "Results in 1Q12 showed a 10.9% year-over-year gain in property net operating income (PNOI), following through on the 9.1% increase posted for full year 2011. Moreover, sales of luxury condominiums have picked up in the company's two projects, which generate attractive cash flows. The solid balance sheet could earn a ratings upgrade, which should lower the cost of funds. We are increasing our 2012E, from $2.12 to $2.27, and we estimate the net asset value of the company, calculated by discounting 2012 PNOI by 4.5%, at $58 (see Figure 1), which is our price target."
PPS closed at $50.05 on Wednesday.
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