UPDATE: Raymond James Reiterates On Parkway Properties On Lowered Estimates

In a report published Monday, Raymond James analyst William A. Crow reiterated an Outperform rating on

, and raised the price target from $21.00 to $22.50. In the report, Raymond James noted, “We reiterate our Outperform rating on PKY while increasing our target price to $22.50 from $21.00 following a strong quarter of leasing activity, continued portfolio repositioning, and indications that management will continue non-core or lower growth asset dispositions. "Fundamentals in Parkway's core Sunbelt markets continue to show improvement, evidenced by continued positive net absorption, increasing rental rates, stable/rising occupancy, and a shift to a decidedly positive (+8%) mark-to-market in in-place rental rates. The expected Halliburton move-out in 2015 will weigh on FFO/share (-$0.03) before it is completely backfilled in early 2016 and $200-250 million in likely dispositions in late 2014/early 2015 (at an estimated 6% cap rate) will also hurt 2015 metrics. Looking past 2015, we believe management continues to create value for shareholders while drastically improving the portfolio's ability to outperform.” Parkway Properties closed on Friday at $20.72.