UPDATE: MLV & Co Reiterates Buy Rating, Raises PT on AmREIT on Adjusted Estimates

In a report published Monday, MLV & Co analyst Paul Morgan reiterated a Buy rating on

, and raised the price target from $24.00 to $25.00. In the report, MLV & Co noted, “Following AmREIT's 2Q14 report, we are raising our price target to $25 from $24, based on rolling forward our NOI forecasts by one quarter. Note that we recently adjusted our valuation methodology for AMRE to incorporate a blended going concern and takeout valuation. Our new $25 price target now reflects an equally weighted average of (1) our going concern valuation (i.e, assuming no M&A resulting from Regency Centers' recent bid and resulting strategic review process), which applies a 10% discount to forward NAV of $26.15 (approximately), yielding a $24 value; and (2) a base case takeout valuation of $26 (up from $25), reflecting rolling forward our 12-month ahead NAV per share estimate by one period. Our $26 value represents an implied cap rate of 5.3% on NTM net operating income as of 4Q14. Our modest estimates for 2014 and 2015 FFO per share are $1.03 (unchanged) and $1.14 (down 1c).” AmREIT closed on Friday at $23.40.