Market Overview

Positive Macro Environment, Valuation Render UDR Attractive, Stifel Says In Upgrade

Positive Macro Environment, Valuation Render UDR Attractive, Stifel Says In Upgrade
Related UDR
Earnings Scheduled For October 29, 2018
Benzinga's Top Upgrades, Downgrades For October 22, 2018

UDR, Inc. (NYSE: UDR) has earned a bullish review from Stifel, with the sell-side firm viewing the REIT as geographically well-diversified with a large portfolio, modest development platform and capital investment strategy. 

The Analyst

Analyst John Guinee upgraded shares of UDR from Hold to Buy and increased the price target from $38 to $40.

The Thesis

The macro picture for the REIT is changing to the positive, Guinee said in a Thursday note.

The uncertainty in Italy and Southern Europe is projected to lead to a lower interest rate environment and a risk-off investment mindset, the analyst said. 

Interest in "hard real estate" has been on the rise as global capital makes its way to calmer investment options amid the slowdown in global growth and the uncertainty engendered by headline news, Guinee said. 

Potential exists for "bear-hug" M&A offers that force the UDR board to consider the proposals, the analyst said. 

UDR's low leverage, solid operating numbers and value-added Developer Capital Program are positives, Guinee said. That said, Guinee said he remains concerned about a lack of near-term development deliveries and a supply-driven slowdown in operational metrics.

The Price Action

UDR stock has shed over 5 percent year-to-date.

Related Links:

KeyBanc's Guide To REITs In 2018: Expect 5-10% Returns

Stifel Downgrades 3 Medical Office REITs As Rising Rates Pressure Cost Of Capital, Investment Spreads

Latest Ratings for UDR

Nov 2018JefferiesUpgradesHoldBuy
Nov 2018BairdDowngradesOutperformNeutral
Nov 2018Capital One FinancialInitiates Coverage OnEqual-Weight

View More Analyst Ratings for UDR
View the Latest Analyst Ratings

Posted-In: John Guinee StifelAnalyst Color REIT Upgrades Price Target Analyst Ratings Real Estate Best of Benzinga


Related Articles (UDR)

View Comments and Join the Discussion!

Latest Ratings

BAPItau BBAUpgrades274.0
DVNJP MorganDowngrades37.0
EOGJP MorganUpgrades118.0
EXPDGoldman SachsDowngrades68.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

UBS On Apple: The Positives Still Outweigh The Negatives, Raise Price Target To $210

NFP Quick Analysis: When The Commander In Chief Leaks, The Dollar Does Not Need The Data