UPDATE: Wunderlich Securities Downgrades Education Realty Trust On Valuation After Solid Run

Loading...
Loading...
In a report published Wednesday, Wunderlich Securities analyst Craig Kucera downgraded the rating on
Education Realty Trust, Inc.EDR
from Buy to Hold, but raised the price target from $37.50 to $40.00. In the report, Wunderlich Securities noted, “We are downgrading Education Realty (EDR) to Hold after a substantial share price run over the past several months and are reducing our 2015 estimates due to higher interest expense and G&A expectations to account for EDR's unsecured notes issuances in 4Q14 and expanding portfolio. We continue to see EDR as maintaining a sustainable competitive advantage in developing on-campus housing via the ONE Plan and in creating additional shareholder value in the student housing space in an environment that is becoming more attractive given a drop in expected supply growth and substantial pent-up demand; however, we believe the shares are nearing full valuation. Our split-adjusted target of $37.50 is increasing to $40 and represents 107% of our $37.40 (5.75% cap rate) NAV and 22.3x 2015E AFFO.” Education Realty Trust closed on Tuesday at $38.40.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorDowngradesAnalyst RatingsCraig KuceraWunderlich Securities
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...