UPDATE: Compass Point Reiterates Buy Rating, Raises PT on Associated Estates Realty Corporation as Dispositions Push NAV Higher

In a report published Thursday, Compass Point analyst Wilkes Graham reiterated a Buy rating on

, and raised the price target from $18.00 to $20.00. In the report, Compass Point noted, “We reiterate our Buy rating on shares of AEC and raise our price target to $20.00 from $18.00. Management's SSNOI guidance cut after strong 1H14 results and continued criticism from the Street regarding management's capital allocation decisions cloud the picture a bit, but impressive cap rates on recent dispositions and the option value of a possible accretive corporate-level transaction continue to make AEC a name worth owning. We are raising our price target to $20 via a 25 bps reduction in our assumed cap rate on the company's portfolio (to 6.0%). Our price target also represents the current 4.2% dividend yield on a 70% payout of our $1.24 2015 AFFO estimate.” Associated Estates Realty Corporation closed on Wednesday at $17.95.