UPDATE: Bank of America Upgrades Kilroy Realty to Buy Following Portfolio Ranking

In a report published Tuesday, Bank of America analyst James Feldman upgraded the rating on Kilroy Realty Corp.

from Neutral to Buy, and raised the price target from $56.00 to $60.00. In the report, Feldman noted, “This morning, we published our ‘portfolio ranking of US office REITs'. The report ranks US office REITs based on a multi-year operating outlook for their office markets. While this ranking focuses only on office market operating conditions, and is not the sole determinant of our investment ratings and stock recommendations, we view it as an important indicator of future portfolio operating performance. KRC ranks #2 in this report. Our 1Q13 Around the Horn Call highlighted continuing downward pressure on cap rates and improving operating conditions in KRC's markets. We view improvement in San Diego as most noteworthy. This market contributes 42% of KRC's stabilized portfolio NOI, and we believe expectations are currently low for a meaningful pickup there.” Kilroy Realty Corp. closed on Monday at $55.18.