UPDATE: ISI Group Upgrades DCT Industrial Trust to Buy

ISI Group raises its rating on DCT Industrial Trust Inc. (NYSE: DCT) from Hold to Buy, also raises the price target to $6.50.

ISI Group wrote, "We are upgrading DCT to Buy with a $6.50 price target. We recently spent two days hosting investor meetings with Phil Hawkins (CEO) and Matt Murphy (CFO). Overall we were impressed by the strong leasing activity through Q2 in both the operating and development portfolio, as slow but steady growth coupled with little new supply continues to support net absorption. Therefore we feel confident in our occupancy growth assumptions (+200bp in FY12 and +180bp in FY13) which will drive SS cash NOI growth of 3.7% and 3.8%, respectively."

DCT closed at $5.88 yesterday.

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