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UPDATE: Compass Point Reiterates On Associated Estates Realty As Dispositions Push NAV Higher

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In a report published Thursday, Compass Point analyst Wilkes Graham reiterated a Buy rating on Associated Estates Realty (NYSE: AEC), and raised the price target from $18.00 to $20.00.

In the report, Compass Point noted, “We reiterate our Buy rating on shares of AEC and raise our price target to $20.00 from $18.00. Management's SSNOI guidance cut after strong 1H14 results and continued criticism from the Street regarding management's capital allocation decisions cloud the picture a bit, but impressive cap rates on recent dispositions and the option value of a possible accretive corporate-level transaction continue to make AEC a name worth owning. We are raising our price target to $20 via a 25 bps reduction in our assumed cap rate on the company's portfolio (to 6.0%). Our price target also represents the current 4.2% dividend yield on a 70% payout of our $1.24 2015 AFFO estimate.”

Associated Estates Realty closed on Wednesday at $17.95.

Latest Ratings for AEC

Jan 2015MLV & Co.DowngradesBuyHold
Dec 2014Compass PointMaintainsBuy
Nov 2014Cantor FitzgeraldDowngradesBuyHold

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Posted-In: Compass Point Wilkes GrahamAnalyst Color Price Target Analyst Ratings


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