UPDATE: Jefferies Downgrades Highwoods Properties to Hold on Valuation

Jefferies lowers its rating on Highwoods Properties

from Buy to Hold as valuation now fully reflects the company's fundamentals. Price target goes up from $35 to $36. Jefferies notes, "1Q12 results and HIW's 2012 guidance raise show that fundamentals are improving in HIW's markets. However, meaningful growth will likely come from acquisitions and developments. In our view, HIW's premium valuation and recent stock run (+19% YTD vs. 7.5% for the FTSE NAREIT Office Index) now reflect HIW's better growth prospects versus its suburban office peers. With valuation increasingly full, we are downgrading to Hold from Buy." HIW closed at $35.15 on Wednesday.