UPDATE: Compass Point Downgrades Home Properties to Neutral on NAV Outlook
Compass Point cut its rating on Home Properties (NYSE: HME) from Buy to Neutral but raised its price target from $68.50 to $71.
Compass Point commented, "We continue to favor HME's portfolio of B assets in A markets, but the outperformance of the stock relative to peers in 2012 combined with the deceleration of growth in the sector for at least the balance of 2H12 dampens our enthusiasm for HME's stock price going forward. Our new $71 price target represents 20% upside from the comapany's increased $59 NAV, and a healthy 13% upside from the current stock price, but we see limited potential for NAV upside from here unless the company's implied 50 bps spread over market cap rates in its portoflio narrows."
Home Properties closed at $64.93 on Monday.
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