Market Overview

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

Related EQR
Merger Monday: Nine Deals You Might Have Missed
Equity Residential to Sell 23,000 Apartment Units to Starwood Capital Group for $5.365B

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

Nov 2015BB&T CapitalInitiates Coverage onHold
Nov 2015MillerDowngradesHoldSell
Oct 2015BarclaysMaintainsEqual-weight

View More Analyst Ratings for EQR
View the Latest Analyst Ratings

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


Related Articles (EQR)

View Comments and Join the Discussion!

Get Benzinga's Newsletters