UPDATE: Jefferies Reiterates Hold Rating, Lowers PT on Associated Estates Realty Corporation on Reasonable Valuation, Challenges Ahead

In a report published Friday, Jefferies analyst Omotayo Okusanya reiterated a Hold rating on

(NYSE:

), but lowered the price target from $17.00 to $16.00. In the report, Jefferies noted, “With: 1) several REITs lowering the high end of 2013 guidance during 2Q13 earnings season; 2) rising supply concerns; 3) rising risk of a reduction in GSE funding; and 4) continued risk of rising interest rates, we may have been early in our move to a more constructive view of sector in July. That said, the apartment sector has declined 9% since July 18, and valuation looks more reasonable; thus we maintain our neutral stance.” Associated Estates Realty Corporation closed on Thursday at $14.89.