UPDATE: Bank of America Downgrades Excel Trust on Valuation

In a report published Friday, Bank of America analyst Craig Schmidt downgraded Excel Trust EXL from Neutral to Underperform, and lowered the price target from $14.00 to $13.00.

In the report, Bank of America noted, “We downgrade Excel Trust (EXL) to Underperform from Neutral and lower our price objective to $13.00 from $14.00. The lower PO is primarily due to lower NOI estimates. We derive our PO based on a 12-month fwd NAV with a 7.45% cap rate to which we apply a -2.5% discount. We believe the discount is warranted given lower visibility on NAV growth. Although we do not foresee any major near-term negative catalysts, the stock screens as an Underperform within our coverage universe based on total potential return of 7.4% from its 8/8/13 price.”

Excel Trust closed on Thursday at $12.75.