UPDATE: J.P. Morgan Upgrades AvalonBay Communities to Neutral Following Period of Restriction

In a report published Wednesday, J.P. Morgan analyst Anthony Paolone upgraded the rating on AvalonBay Communities

from Not Rated to Neutral with a $141.00 price target. In the report, Paolone noted, “Following a period of restriction, we are moving from a Not Rated status to a Neutral rating and a December 2013 price target of $141 (Neutral rating and December 2013 $149 price target prior to restriction). AVB arguably has one of the highest quality apartment REIT portfolios and valuation has gotten more compelling over the last year, in our view. However, we think excess supply concerns in markets such as Washington D.C., the Lehman share overhang (the lock-up expires on April 26), and questions surrounding the company's 2013 capital needs may keep a lid on the stock in the near future.” AvalonBay Communities closed on Tuesday at $127.09.