UPDATE: Goldman Sachs Initiates Coverage on Education Realty Trust with Neutral Rating, $11 PT

In a report published Friday, Goldman Sachs Group initiated coverage on Education Realty Trust

with a Neutral rating and $11.00 price target. Goldman Sachs noted, “We are initiating coverage of Education Realty Trust (EDR) with a Neutral rating, relative to our Neutral apartment coverage view, and a 12-month price target of $11 (9.1% upside, including dividends). We believe EDR's earnings growth – derived from a combination of development accretion and moderate revenue growth – should drive share price performance. Our model presumes a five-year earnings growth forecast of 55%, in the middle of our student housing coverage but slightly ahead of the apartment average (47%). The company continues to upgrade its portfolio, seeking to shed the assets it owns in smaller markets and develop and acquire its way onto tier one campuses. It has further to go, and it is targeting the assets it owns that are far from campuses for disposition.” Education Realty Trust closed on Friday at $10.36.