UPDATE: Keefe, Bruyette & Woods Downgrades Silver Bay Realty Trust Corp. to Market Perform, Lowers PT Due to Ongoing Uncertainty

In a report published Wednesday, Keefe, Bruyette & Woods analyst Jade J. Rahmani downgraded the rating on

from Outperform to Market Perform, and lowered the price target from $20.00 to $17.50. In the report, Keefe, Bruyette & Woods noted, “While we believe the current investment opportunity for single-family rental (SFR) REITs remains favorable, we lower our rating on SBY to Market Perform. While downside should be limited, we believe SBY's performance could lag investor expectations and peers due to uncertainty regarding margins, business strategy, and access to capital. While SBY's discount to book value and net asset value (NAV) could raise the probability of a take-out, merger, or portfolio sale, fundamental uncertainties related to operating performance make us reluctant to factor such outcomes into our valuation. Separately, we reduce our 4Q estimate to $0.01 from $0.02 due to lower assumed occupancy (on seasonality). Lowering PT.” Silver Bay Realty Trust Corp. closed on Tuesday at $15.71.