Market Overview

UPDATE: Stifel Nicolaus Downgrades AvalonBay Communities to Hold on Valuation, Equity Overhang

Related AVB
Homeownership Is At 48-Year Lows And Rents Are Skyrocketing: How Do You Invest In That?
Credit Suisse 'Very Positive' On U.S. REITs: Upgrades Seven Stocks, Downgrades Three
Apartment boom leveling out (Seeking Alpha)

Stifel Nicolaus reduced its rating on AvalonBay Communities (NYSE: AVB) from Buy to Hold and removed its previous $145 price target.

Stifel Nicolaus commented, "We are downgrading AVB from Buy to Hold, as we believe the overhang from the $1.9 billion of AVB equity that will be held by Lehman post the closing of the Archstone transaction will weigh on shares. Additionally, AVB shares trade at a 7.9% discount to our $145 NAV, the lowest in the apartment sector (vs. the weighted average apartment REIT sector trading at a 14.5% discount). Upward movement in AVB's shares might be difficult. We remain cautious on the apartment sector heading into 2013."

AvalonBay Communities closed at $133.40 on Wednesday.

Latest Ratings for AVB

Sep 2015Mizuho SecuritiesMaintainsNeutral
Sep 2015Evercore PartnersMaintainsBuy
Aug 2015Credit SuisseUpgradesNeutralOutperform

View More Analyst Ratings for AVB
View the Latest Analyst Ratings

Posted-In: Stifel NicolausAnalyst Color Downgrades Intraday Update Analyst Ratings


Related Articles (AVB)

View Comments and Join the Discussion!

Get Benzinga's Newsletters