UPDATE: ISI Group Upgrades Vornado Realty Trust to Neutral, Trading Near $81 Price Target

ISI Group published a report on Vornado Realty Trust

that upgraded the company from Cautious to Neutral and maintained its $81 price target. In the report, ISI Group wrote, "While we continue to believe that Vornado faces a number of near-term challenges including leasing up its vacancy in Washington, the stock has lagged the RMZ index by 620bp since late January and is trading just below our $81 price target. We should remind investors that our NAV estimate of $87 haircuts the company's investment in Toys R Us by 90% and values it at just $40mn (versus its book investment of over $475mn) while we value VNO's stake in JCP at the current stock price suggesting that the downside risk from these two investments in limited at this point. While we continue to advocate for further dispositions of non-core assets at a faster clip (including selling LXP, 555 California and the Chicago Mart Building), we find the risk/reward more appropriately valued[.]" Vornado Realty Trust closed at $80.31.