UPDATE: BMO Capital Markets Upgrades Acadia Realty Trust to Outperform, Raises PT

In a report published Friday, BMO Capital Markets upgraded its rating on Acadia Realty Trust (NYSE: AKR) from Market Perform to Outperform, and raised its price target from $25.00 to $30.00.

BMO Capital noted, “Although AKR stock has outperformed the REIT Index year to date, we think the company's recent transformative urban asset aggregation more firmly establishes a recession-resistant base as well as an enhanced internal growth profile for the long term. Further, we believe AKR is well positioned to grow earnings per share better than peers based on 1) embedded A&P reanchoring income; 2) a strong and accretive investment pipeline; and 3) fund activities. We believe this ‘best-in-class' growth profile is not adequately realized in the stock's valuation and think AKR's AFFO multiple could expand by 2-3x, which would be consistent with historical absolute and relative valuation.”

Acadia Realty Trust closed on Thursday at $24.94.

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