UPDATE: JP Morgan Raises PT to $17 on DDR on Relative Valuation

JP Morgan reiterated its Neutral rating on DDR

but raised its price target from $16.50 to $17. JP Morgan commented, "Despite the discounted multiple and our view that the company's core growth will be above average (versus the strip center REIT group), we maintain a Neutral rating on DDR because: 1) we believe the company's continued deleveraging activities could weigh on near-term earnings growth, and 2) we see more compelling investment opportunities across the strip center space (particularly FRT) – i.e. companies with lower leverage and better positioned to grow. … DDR trades at 14.2x our 2013 FFO estimate – a 13% discount to its peers. On an AFFO basis, DDR trades at 16.8x our 2013 estimate, a 21% discount to its peers. We believe the large discount on the stock is due to the company's above-average leverage level." DDR closed at $15.47 on Wednesday.