UPDATE: Stifel Nicolaus Upgrades Parkway Properties to Hold

Stifel Nicolaus raises its rating on Parkway Properties

to Hold from Sell on valuation grounds. Stifel Nicolaus says, "We are upgrading Parkway to Hold from Sell as 1) PKY is attractively valued based on $106/SF of TEV relative to gross/adjusted replacement cost of $247/$198/SF for the SN projected portfolio as of 2Q12, 2) PKY is fairly valued at implied NOI/Cash Flow/CF less G&A cap rates of 9.6%/5.9%/3.3% based on SN 2Q12 projections, 3) trades at a 25%-34% discount to our Net Asset Value range of 8.0%-8.5%, 4) we tend to favor companies that are active asset recyclers." PKY closed at $10.15 a share on Tuesday.