UPDATE: Wunderlich Securities Downgrades Cedar Realty Trust on Valuation
In a report published Thursday, Wunderlich Securities analyst Craig Kucera downgraded the rating on Cedar Realty Trust (NYSE: CDR) from Buy to Hold, and lowered the price target from $7.00 to $6.75
In the report, Wunderlich Securities noted, “We are downgrading Cedar Realty Trust (CDR) from Buy to Hold and lowering our price target from $7 to $6.75. CDR has had a good run since October 2013 (+21% vs. RMZ at +5% over the same time period) but following a 1Q14 equity raise at a ~15%+ net discount to our previous NAV estimate, we are trimming our 2014 FFO estimate from $0.57 to $0.53 and reducing our NAV estimate modestly (~$0.10). The fundamentals at CDR remain positive and we applaud management's efforts at repositioning and deleveraging the portfolio, but given CDR's current price relative to our NAV and DCF estimates at <$7, we are downgrading shares to Hold given a total return potential (including the ~3% dividend yield) in the 11% range.”
Cedar Realty Trust closed on Wednesday at $6.21.
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