UPDATE: ISI Group Downgrades DCT Industrial Trust to Hold, Raises PT
In a report published Friday, ISI Group downgraded its rating on DCT Industrial Trust (NYSE: DCT) from Buy to Hold, but slightly raised its price target from $6.50 to $6.75.
ISI Group noted, “We are downgrading DCT from Buy to Hold as we find the company fairly valued at current levels although our price target nudged higher from $6.50 to $6.75. The stock performed well during the summer, posting a total return of 15% over the past 90 days which outperformed the REIT Index by almost 600bp. At current levels, DCT trades at a 4% discount to our $6.75 forward NAV and 20x 2013 AFFO (vs. a 2% discount and 23x for the REIT sector). At current levels we continue to like the company's strategy and the continued (albeit modest) improvement in industrial fundamentals. That said, we do not see meaningful upside from here and would suggest investors wait for a better entry point to add to positions or establish new positions in the stock.”
DCT Industrial Trust closed on Thursday at $6.51.
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