UPDATE: Stifel Initiates Coverage on Empire State Realty Trust with Hold Rating on Fair Valuation

In a report published Monday, Stifel analyst John Guinee initiated coverage on Empire State Realty Trust (NYSE: ESRT) with a Hold rating.In the report, Stifel noted, “We are initiating coverage of Empire State Realty Trust (ESRT) with a Hold rating on the shares. Our fair value estimate is $13.50/share, an 18.5x multiple on our 2014E funds from operations of $0.73/share...We like the (1) Midtown south submarket and Empire State Building position, (2) portfolio lease-up opportunity from current 86.4%/83.2% leased/occupied to 93%, (3) below market leases, (4) a low square foot investment basis discussed below, and (5) strong 30.9% leveraged (debt+preferred to total enterprise value [TEV]) balance sheet.”Empire State Realty Trust closed on Friday at $13.51.