UPDATE: Goldman Sachs Upgrades BRE Properties to Neutral on Geographic Portfolio Exposure

Goldman Sachs upgraded BRE Properties BRE from Sell to Neutral and raised the price target from $47.00 to $50.00. Goldman Sachs noted, "We upgrade to Neutral, and increase our 12-month price target by $3 to $50 as a result of: (1) Refinance potential. As debt costs for REITs have declined, BRE could benefit due to $40 mn of 7.13% unsecured debt rolling in February and $54 mn of 6.75% preferreds that are now redeemable. (2) Improved fundamentals. Job growth in BRE's markets is the best in the apartment sector due to its exposure to strong California markets, and no exposure to Washington, DC. BRE's earnings growth may lag due to low development returns, a potentially challenged tax policy environment for employment and a potential loss of renter demand if the home ownership rate recovers." BRE Properties closed at $51.16 on Monday.