UPDATE: Bank Of America Reiterates On American Realty Capital Properties On Attractive Valuation

In a report published Wednesday, Bank of America analyst Juan C. Sanabria reiterated a Buy rating on American Realty Capital Properties ARCP, but lowered the price target from $15.50 to $15.25. In the report, Bank of America noted, “Post NAREIT, we're gaining confidence in David Kay's (expected to be CEO by YE14) ability to continue to address concerns & build investor confidence, including adding personnel to financial reporting. ARCP has 1) deleveraged its balance sheet & is looking to continue to extend debt duration; 2) sold its shopping center portfolio; & 3) internalized management. "We think that ARCP remains a multiple expansion story trading at a 31% FFO discount to its closest peer (O) despite in line fixed charge coverage & debt duration with an attractive 8.2% distribution rate.” American Realty Capital Properties closed on Tuesday at $12.10.