UPDATE: BMO Capital Markets Initiates Coverage on General Growth Properties with Outperform Rating, $24 PT on Multiple Positive Factors

In a report published Thursday, BMO Capital Markets analyst Joshua M. Patinkin initiated coverage on General Growth Properties (NYSE: GGP) with an Outperform rating and $24.00 price target.In the report, Patinkin noted, “We're initiating coverage of General Growth Properties, a major owner of class ‘A' malls in the US, with an Outperform rating. Though the company emerged from bankruptcy less than three years ago, its new management team has created value from internal sources by: re-leasing empty boxes, converting temporary tenants to permanent, and selectively re-developing and expanding top performing centers, including a $572 million expansion of Honolulu's Ala Moana Center – one of the most productive mall properties in the country. Further, we think there could be upward pressure on the stock, as short-term investors divest or are reclassified as ‘passive' for index calculation purposes, increasing the stock's free float and index weight. Finally, we believe there's still lingering skepticism, given the company's tumultuous recent past; we're buyers on this discount.”General Growth Properties closed on Wednesday at $20.85.