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UPDATE: Compass Point Raises PT to $61.50 on Equity Residential on Valuation

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Compass Points reiterates its Neutral rating on Equity Residential (NYSE: EQR) and raises its price target from $57.50 to $61.50.

Compass Points notes, "We are incrementally more positive on EQR's valuation, but still believe the stock is fairly valued at current levels. Last week's announcment that the company will not be buying a stake in Archstone not only earns the company $150M, but also removes the overhand in the stock that had persisted since the company originally announced its intention to bid on the stake back in November 2011. Our price target is based on a slightly lowered cap rate of 5.40% on the portfolio, $1.67/share of development PV, $150 milloin in expected breakup fees, and a 20% premium to our resulting $51.22 NAV estimate. Including the dividend, our price target represents 1% total return downside at current trading levels."

EQR closed at $62.53 on Tuesday.

Latest Ratings for EQR

DateFirmActionFromTo
Aug 2015BarclaysMaintainsEqual-weight
Jul 2015SunTrust Robinson HumphreyInitiates Coverage onNeutral
Jul 2015JefferiesMaintainsHold

View More Analyst Ratings for EQR
View the Latest Analyst Ratings

Posted-In: Compass PointsAnalyst Color Price Target Reiteration Intraday Update Analyst Ratings

 

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