UPDATE: Bank of America Downgrades Weingarten Realty Investors to Neutral, Reiterates $31 PT on Valuation

In a report published Monday, Bank of America analyst Craig Schmidt downgraded the rating on Weingarten Realty Investors

from Buy to Neutral, but reiterated the $31.00 price target. In the report, Schmidt noted, “We are downgrading Weingarten Realty (WRI) to Neutral from Buy and maintaining our price objective of $31. 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.