UPDATE: Bank of America Downgrades Weingarten Realty Investors to Neutral on Valuation
In a report published Monday, Bank of America analyst Craig Schmidt downgraded the rating on Weingarten Realty Investors (NYSE: WRI) from Buy to Neutral, but reiterated the $31.00 price target.
In the report, Schmidt noted, “We derive our PO based on a 12-month forward NAV with a 7.2% cap rate. We do not anticipate any negative catalysts near term, and expect that management will continue to execute well on the portfolio. However, the stock currently screens as a Neutral within our coverage universe based on a total potential return of 2.8% from its 3/26/13 closing price. In our view, WRI management delivered in 2012. WRI successfully exited its industrial portfolio, and produced its goal of 4-5% SS NOI gains. The stock has performed well, outperforming peers over the last 30 days, 90 days, and year by 1.4%, 5.4%, and 3.3%, respectively. At this juncture, we view near term catalysts to be limited, and management has guided SS NOI of 2-3% in 2013, which represents slower growth.”
Weingarten Realty Investors closed on Thursday at $31.55.
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