UPDATE: Morgan Stanley Reiterates On American Residential Properties On Compelling Risk-Reward

In a report published Tuesday, Morgan Stanley analyst Haendel E. St. Juste reiterated an Overweight rating on

, but removed the $22.00 price target. In the report, Morgan Stanley noted, “ARPI's acquisition pace remained muted in 1Q14 as the company awaits fresh dry powder from securitization. In the interim, we look for ARPI to expand its bank line to fund incremental portfolio growth in the near term. However, securitization capital is critical to re-ramping buying activity while at the same time lowering cost of capital and boosting ROE long term. As such, all eyes will be on any incremental update ARPI can provide on securitization on tomorrow's call. "In the mean-time, while buying activity remains muted, ARPI grew stabilized occupancy in 1Q, rebounding from 4Q's POP and seasonality driven decline. Despite continued portfolio progress, ARPI continues to trade 10% below marked-to-market portfolio value. As such, we remain OW, given compelling risk-reward.” American Residential Properties closed on Monday at $18.14.