UPDATE: UBS Upgrades AIMCO Properties, Notes That Shares Appear Cheap

In a report released Tuesday, UBS analyst Nick Yulico upgraded Apartment Investment and Management AIV from Neutral to Buy and raised the company's price target from $32.00 to $36.00.

Yulico claims AIMCO Properties to be cheap, projecting the stock to trade at a 15 percent discount to one-year forward net asset value. Analysts at UBS forecast AIMCO to report SSNOI growth of nearly five percent in the 2013 to 2015 period.

UBS' one-year forward net asset value is given by a conservative economic cap rate of six percent, while its price target reflects a five percent net asset value discount compared to a previous 10 percent discount.