Wunderlich Raises PT on Ramco-Gershenson Given Lower Cap Rate Estimate

In a report published Thursday, Wunderlich Securities analyst Craig Kucera reiterated a Hold rating on

, and raised the price target from $16.25 to $19.00. In the report, Wunderlich Securities noted, "We maintain our Hold rating and are raising our price target to $19 on Ramco-Gershenson (RPT), while also raising our 2015 FFO estimate by $0.02 to $1.29 and establishing a 2016 FFO estimate of $1.38. RPT reported 4Q14 results in line with consensus of $0.33. We look to 2015 as predominantly an organic growth year with some (~$50mm cost) redevelopment activity in our estimates after two years of robust external growth." The report continued, "We've lowered our cap rate estimate for the portfolio from 7.25% to 7%, driving an $18.29 NAV, and our $19 target values NAV at 104%, effectively in line with shopping center REITs trading at 103%. Shares appreciated significantly from 4Q14 on a decline in long-term interest rates but, in the current environment, we find RPT to be fairly valued and maintain our Hold rating." Ramco-Gershenson Properties Trust closed on Wednesday at $19.07.