) and has downgraded the company from Buy to Hold based on valuation. In the report, Wunderlich writes, "We are downgrading BRE Properties (BRE) from Buy to Hold, and reiterate our price target of $55 per share. BRE reported 1Q12 funds from operations (FFO) a penny ahead of our estimate, at $0.57 per share, and maintained full-year guidance. We view current trading levels as nearing fair value for this high-quality multifamily REIT focused on attractive Western U.S. growth markets. Employment and rental rate increases are robust -- but slowing -- in its Northern California and Seattle markets. The stock trades at a premium valuation to peers, which we believe is justified by the company's better relative growth prospects. With $2 of price appreciation and $1.54 in dividends, the one-year total return potential to our target is a modest 7%." Wunderlich maintains its $55 price target on BRE Properties, which is currently trading down $0.23 from yesterday's $52.98 closing price.