Home Properties Price Target Raised To $45 Per Share (HME)

Home Properties, Inc (NYSE: HME) shares are down -0.59% to $45.29 per share as analysts at Baird raised their price target from $43 to $45 per share. With the price target change the analysts did not change their rating of Neutral/Average Risk on Home Properties, Inc (NYSE: HME).

Head analyst Paula J. Poskon explained, "Risk rating on HME shares after incorporating 4Q09 results and components of guidance into our model. We view the dividend cut as a prudent action, though we foresee a need for more dispositions in 2011/2012 to meet funding needs. We see little on the horizon to propel shares much beyond current levels and thus remain on the sidelines."

If you feel the analyst is right with her $45 price target you could entertain taking some money off the table by selling in the money calls at the $45 strike on the shares. April 2010 expiration is 53 days away and has extrinsic value of $1.40 per share. This helps lower your average cost per share by $1.40, but limits your upside gain. There is not much open interest there of only 371 contracts but you should be able to get a decent fill price today.