UPDATE: Stifel Nicolaus Upgrades Washington REIT to Buy; Oversold on Dividend Cut

Stifel Nicolaus raised its rating on Washington REIT WRE from Hold to Buy and established a price target of $30 on shares. Stifel Nicolaus said, "We are upgrading Washington REIT to Buy as 1) the dividend reduction to $1.20/year from $1.735/year now provides breathing room for coverage and hopefully positions the new 4.6% yielding dividend for growth, 2) with Implied NOI/Cash Flow/CF less G&A Cap Rates of 7.1%/6.1%/5.5%, WRE trades at a very high 23%-32% discount to our 5.5%-6.0% Net Asset Value range, 3) we think the portfolio repositioning will prove beneficial once the D.C. MSA economy improves." Washington REIT closed at $26.24 on Friday.