UPDATE: Stifel Nicolaus Downgrades Mission West Properties to Hold on Valuation
Stifel Nicolaus reduced its rating on Mission West Properties (NASDAQ: MSW) from Buy to Hold and removed its previous $9.20 price target.
Stifel Nicolaus commented, "On 11/02/12, Mission West formally announced the sale, that shareholders will be paid $9.20-$9.28 depending on dividends paid, and that closing is expected by YE12. As the share price is now $9.12, we are downgrading to Hold. We do not expect another bidder to become involved, and think a YE12 time frame may prove aggressive. At $9.25/sh, MSW is valued at a 6.6% implied NOI cap rate and $175/SF. Assuming the MicroSoft and Apple, Inc. campuses are worth $350/SF or $349mm, the remaining assets are valued at $148/SF."
Mission West Properties closed at $9.12 on Friday.
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