UPDATE: Bank of America Downgrades Ramco-Gershenson Properties Trust to Underperform, Reiterates $15.50 PT on Valuation

In a report published Monday, Bank of America analyst Craig Schmidt downgraded the rating on Ramco-Gershenson Properties Trust RPT from Neutral to Underperform, but reiterated the $15.50 price target. In the report, Schmidt noted, “We are downgrading Ramco Gershenson (RPT) to Underperform from Neutral and maintaining our price objective of $15.50. We derive our PO based on a 12-month forward NAV with a 7.50% cap rate. While we do not foresee any major near term negative catalysts, the stock screens as an Underperform within our coverage universe based on a total potential return of -3.7% from its 3/26/13 closing price. RPT has outperformed peers over the last 30 days, 90 days, and year by 7.7%, 11.8%, and 22.5%, respectively. RPT trades at 19.9x 2013 and 19.4x 2014 AFFO estimates vs peers (CDR, DDR, EXL, KRG, KIM) at 18.7x and 17.0x, respectively.” Ramco-Gershenson Properties Trust closed on Thursday at $16.80.