UPDATE: Stifel Nicolaus Upgrades DCT Industrial Trust on Multiple Positive Factors

In a report published Thursday, Stifel Nicolaus analyst John Guinee upgraded DCT Industrial Trust DCT from Hold to Buy, and named an $8.50 price target.

In the report, Stifel Nicolaus noted, “We are upgrading DCT Industrial from Hold to Buy because: 1) its relative valuation is attractive; 2) as evidenced by recent earnings reports from other industrial REITs we cover, fundamentals continue to improve as supply remains in check; and 3) we continue to like DCT's focused strategy, incrementally more so now with Mexico in its rear-view mirror. With an implied NOI/Cash Flow/CF less G&A cap rate of 5.8%/4.7%/4.0%, TEV/SF of $60 at 1%-19% premiums to gross/adjusted replacement cost, and 2014E FFO/FAD multiples of 16.7x and 24.0x, respectively, we think DCT shares are now attractively valued relative to peers.”

DCT Industrial Trust closed on Wednesday at $7.69.