UPDATE: Compass Point Upgrades Home Properties on Attractive Risk/Reward

Compass Point raised its rating on Home Properties

from Sector Perform to Underperform. Compass Point commented, "In a decelerating earnings environment that will face tougher comps in 2013, HME should be insulated from pressure on rental rates from both new supply and single-family homebuying pressures. Our slightly increased price target represents a 21% total return from current levels after factoring in the 4% dividend yield, and represents the highest risk-adjusted total return in our apartment REIT coverage universe. The addition of $1 to our price target plus the 5% selloff in the stock since our early August downgrade equates to 21% total return potential from current levels, up from 13% just a few months ago." Home Properties closed at $61.54 on Monday.