UPDATE: Compass Point Reiterates Buy Rating, Raises PT on Independence Realty Trust as Capital Base/Pipeline Continue to Grow

In a report published Tuesday, Compass Point analyst Wilkes Graham reiterated a Buy rating on Independence Realty Trust IRT, and raised the price target from $10.50 to $11.50. In the report, Compass Point noted, “On July 21 the company closed on its $76 million common equity raise via the issuance of 8.05 million shares at $9.50/share. This compares to the $100 million capital raise at $8.50/share that was included in our previous model. Thus, given the higher price at which equity was raised and our increased conviction in the company's ability to execute on its $398 million pipeline (including assets under contract), we are raising our earnings estimates and 2015 dividend expectation by approximately 6%. Our $11.50 price target equally weights NAV at a 20% discount, small cap REIT valuations at a 20% discount, and apartment REIT valuations at a 30% discount.” Independence Realty Trust closed on Monday at $9.81.