UPDATE: Wunderlich Securities Downgrades EastGroup Properties to Hold on Valuation
Wunderlich Securities reduced its rating on EastGroup Properties (NYSE: EGP) from Buy to Hold but maintained its price target at $55.
Wunderlich Securities commented, "We are downgrading the shares of EastGroup Properties (EGP) from Buy to Hold because we believe the shares are close to fair value. The company reports that leasing activity has slowed in recent weeks, which we attribute to uncertainty about the fiscal cliff and general economic prospects on the part of tenants and prospective tenants. This could reverse and may be a temporary headwind. EGP has strengthened its balance sheet through share issuance, and has lowered guidance slightly for 2012. Under these circumstances, we believe that raising the price target is not logical, so we are lowering our rating and maintaining our price target. We continue to view shares of EGP as a core holding for income-oriented investors."
EastGroup Properties closed at $52.42 on Friday.
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Tags: Wunderlich Securities