UPDATE: Citigroup Downgrades Retail Properties of America to Neutral on Valuation
Citigroup reduced its rating on Retail Properties of America (NYSE: RPAI) from Buy to Neutral while raising its price target from $10 to $13.
Citigroup noted, "[W]ith RPAI shares up 56% since the April IPO, the discounted valuation has now been closed off with shares trading at a 7.2% implied cap rate and a premium to NAV. Management has impressed with their ability to sell non core assets at better than expected values and while RPAI can still benefit from additional asset sales, we feel additional execution on asset sales is widely factored in by the market. The next potential catalyst for RPAI shares is an increase in occupancy that could drive outsize NOI growth."
Retail Properties of America closed at $12.49 on Wednesday.
Latest Ratings for RPAI
|Dec 2014||Deutsche Bank||Maintains||Buy|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.