UPDATE: Key Banc Downgrades SL Green to Underweight, PT is at $64

Key Banc downgrades SL Green

to an Underweight rating with a downside price target of $64 per share. Key Bank says, "Conditions in Manhattan have significantly improved following post-Lehman lows, and the market has returned to prominence among favored markets; however, growing concerns surrounding the health of financial services tenants and the drag from the further retrenchment (i.e., layoffs) will likely take some of the sheen off of the Manhattan office market in 2012. The specter of new supply downtown and on the far west side also seems likely to keep occupancies and rents in check. While we expect SLG to demonstrate strong execution in a relatively stable market, the stock's premium valuation appears excessive." SLG closed at $72.15 per share on Wednesday.