UPDATE: Imperial Capital Initiates Coverage on DDR as Stock Offers Relative Value, Attractive Growth Prospects

In a report published Wednesday, Imperial Capital analyst David Harris initiated coverage on DDR Corp. DDR with an Outperform rating and $18.00 price target. In the report, Imperial Capital noted, “We are initiating coverage on DDR common stock with an Outperform rating and a one-year price target of $18. Achieving our price target, together with receipt of the current dividend, would generate a potential 17% total return over 12 months, which is at the upper end of our sector expectations. DDR is one of the largest public owners of shopping center properties. We regard shopping centers as a relatively stable property type. Notwithstanding the rise of e-commerce/internet retail sales, there is solid demand for space in good, well located centers from price discount retailers and other ‘big-box' users. The U.S. is well supplied with physical retail space though new supply is limited by preleasing to retailers. From being overstretched in 2008/2009, DDR has rationalized its portfolio, cut its development, and reduced debt over recent years.” DDR closed on Tuesday at $15.85.