UPDATE: Miller Tabak Raises PT to $56.02 on Equity Residential; Updating for Archstone Deal

Miller Tabak reiterated its Hold rating on Equity Residential EQR and raised its price target from $55.87 to $56.02. Miller Tabak noted, "[T]here is one area of valuation where we believe the Archstone acquisition will immediately add to EQR's intrinsic value: the NAV calculation, where our new estimate has risen to $73.8/share -- for 12/31/13 -- from $63.6 (for 12/31/12.) This increase comes largely from the large increase in low cap rate, higher quality properties. The key incremental factor is the cap rate applied to properties' rent increases -- $100 rent increase on a 6% cap rate apartment adds $1,666 to the apartment's market value, but $100 rent increase on a 4.5% cap-rate apartment adds $2,222 in value." Equity Residential closed at $55.25 on Tuesday.