UPDATE: Bank of America Initiates Silver Bay Realty Trust at Neutral on Execution and Valuation

Bank of America initiated coverage on Silver Bay Realty Trust

with a Neutral rating and a $20.00 price objective. Bank of America commented, "SBY has a portfolio of 3,100+ homes and $258.1M of net IPO proceeds (including greenshoe) that will be used to acquire, renovate, and lease single-family rental homes. SBY is externally managed and intends to elect and qualify to be a REIT. In our view, industry trends are favorable for single-family home price appreciation, and niche demand for rentals exists. However, valuation and execution risk keep us at Neutral." Silver Bay Realty Trust closed at $20.13 on Monday.