Compass Point Reiterates a 'Sell' on Post Properties (PPS); 2H Underperformance Expected
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Price: $51.04 -2.26%
Rating Summary:
8 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
8 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade PPS Now!
Compass Point reiterates a 'Sell' on Post Properties (NYSE: PPS) price target of $42.00 (from $41.00).
Analyst, Wilkes Graham, said, "PPS reported second quarter FFO per share of $0.73 versus our estimate of $0.55 and consensus estimate of $0.57. When we exclude the positive benefit of condo sales we reach an FFO of $0.57, which is in line with consensus and slightly above our estimate. The company reported a solid quarter, however, we anticipate a challenging back half of 2012 as the company reaches the upper limit of its ability to increase rents and move outs increase. The company's same-store NOI guidance for the year implies sector low year-over-year growth in 2H12 of 4.7% vs 10.7% in 1H12 and vs 6.4% for the sector in 2H12. We expect PPS shares to underperform the rest of the year due to this earnings deceleration as well as reduced contribution from condo sales and what we believe is a greater risk for tenant move outs due to home purchases."
For an analyst ratings summary and ratings history on Post Properties click here. For more ratings news on Post Properties click here.
Shares of Post Properties closed at $51.23 yesterday, with a 52 week range of $32.18-$52.98.
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Analyst, Wilkes Graham, said, "PPS reported second quarter FFO per share of $0.73 versus our estimate of $0.55 and consensus estimate of $0.57. When we exclude the positive benefit of condo sales we reach an FFO of $0.57, which is in line with consensus and slightly above our estimate. The company reported a solid quarter, however, we anticipate a challenging back half of 2012 as the company reaches the upper limit of its ability to increase rents and move outs increase. The company's same-store NOI guidance for the year implies sector low year-over-year growth in 2H12 of 4.7% vs 10.7% in 1H12 and vs 6.4% for the sector in 2H12. We expect PPS shares to underperform the rest of the year due to this earnings deceleration as well as reduced contribution from condo sales and what we believe is a greater risk for tenant move outs due to home purchases."
For an analyst ratings summary and ratings history on Post Properties click here. For more ratings news on Post Properties click here.
Shares of Post Properties closed at $51.23 yesterday, with a 52 week range of $32.18-$52.98.
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