UPDATE: J.P. Morgan Upgrades Equity Residential to Neutral Following Period of Restriction
In a report published Wednesday, J.P. Morgan analyst Anthony Paolone upgraded the rating on Equity Residential (NYSE: EQR) from Not Rated to Neutral with a $63.00 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 $63 (Neutral rating and a December 2013 $66 price target prior to restriction). On the positive side, we think EQR's portfolio has improved in quality with its acquisition of 60% of the Archstone assets coupled with the disposition of some if its non-core assets in secondary markets. In addition, the stock has lagged, which has led to a relatively cheaper valuation. However, supply concerns are likely to persist in markets such as Washington, D.C., and the overhang from Lehman's April 26 share lockup expiration could weigh on the stock in the near term.”
Equity Residentail closed on Tuesday at $55.39.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.