Wunderlich Securities Stays On Sidelines As AmREIT Rejects Regency's Bid

In a report published Thursday, Wunderlich Securities analyst Craig Kucera reiterated a Hold rating and $22.00 price target on

. In the report, Wunderlich Securities noted, “We are maintaining our estimates, rating and price target for AMRE following inline 2Q14 earnings. There has been much musing regarding the value of AMRE's redevelopment potential; however, we estimate 95% of future cash flow from redevelopment projects (at the midpoint of management estimates) will come in 2018 and beyond. This may lead to a higher risk premium in cost of capital/hurdle rate assumptions in valuing that cash flow, given where we are in the interest rate cycle, the cyclicality of energy markets, and the lack of supply constraints in AMRE's markets. While those projects may be worth more to some buyers, we are staying on the sidelines as several key assumptions can significantly impact valuation.” AmREIT closed on Wednesday at $23.60.