UPDATE: J.P. Morgan Initiates Coverage on Brixmor Property Group with Overweight Rating, $22 PT on Good Growth from Organic Sources

In a report published Monday, J.P. Morgan analyst Michael W. Mueller initiated coverage on Brixmor Property Group BRX with an Overweight rating and $22.00 price target. In the report, J.P. Morgan noted, “We are initiating coverage of Brixmor Property Group (BRX), the second largest strip center REIT, with an Overweight rating and a $22 price target. Our constructive stance on the stock largely stems from our belief that the company is well positioned to generate high-single-digit earnings growth largely from organic sources. Since the legacy portfolio was ‘cleaned-up' pre-IPO, it should also mean that dilutive asset sales should not occur near term. We see the Blackstone overhang (77% economic stake) as a double-edged sword. The bear case is that the overhang could impact near-term relative valuation, but as the float increases, it should raise benchmark weightings and put the stock on more radar screens.” Brixmor Property Group closed on Friday at $20.19.