UPDATE: Compass Point Upgrades Post Properties to Neutral on Valuation
Compass Point upgraded Post Properties (NYSE: PPS) from Sell to Neutral and increased its price target from $42 to $46.
Compass Point noted, "PPS reported a solid third quarter, recording FFO of $0.76 versus our estimate and consensus of $0.62. The company beat expectations on both core operating metrics and condo sales, a runoff operating segment. We continue to believe that PPS is the most exposed apartment REIT to rental revenue deceleration based on the portfolio footprint in affordable housing markets, premium-tomarket rents, and tough 2012 year-over-year comps in 2013. As such, our upgrade has less to do with any expectation of fundamental outperformance and more to do with value inherent in the portfolio. We continue to believe that downside potential exists in the stock, but only on the order of 5% after accounting for the 2% current dividend yield."
Post Properties closed at $49.76 on Monday.
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