UPDATE: Jefferies Raises PT on DDR Corp on Further Multiple Expansion

In a report published on Friday, Jefferies analyst Omotayo Okusanya raised the price target on DDR Corp DDR and upgraded it to a Buy rating.

In the report, Jefferies noted, "DDR remains focused on internal as well as external growth. The continued balance sheet improvement was just rewarded by Fitch on 05/22 with an upgrade to BBB- (investment grade) from BB+, with a stable outlook. We believe management is making impressive progress in regards to its 5-Year Plan which calls for 1) a 96.5% leased rate (currently at 94.4%); 2) SS NOI growth of 2.0%-2.5% (3.3% currently); 3) investment grade ratings from all three credit rating agencies (now achieved); 4) greater than 95% of NOI from high quality prime assets (now at 89.4%), and 5) Consolidated Debt/EBITDA <6.0x (now at 7.2x). In our view, successful execution of the 5-Year Plan (which we now expect to happen early) should result in 1) improved FFO/sh growth in 2014 and 2015 (we estimate 8%, 10% and 12% FFO/growth in 2013, 2014 and 2015); 2) improved NAV/sh growth; 3) further growth in the dividend, and 4) further multiple expansion."

DDR Corp closed on Thursday at $18.56.