Deutsche Bank Starts City Office REIT (CIO) at Buy

Deutsche Bank initiated coverage on City Office REIT (NYSE: CIO) with a Buy rating and a price target of $14. Analyst Vin Chao characterized the company as a "scale up story."

"CIO is a small cap office REIT focused on Class A & B properties in high growth non-gateway markets in the Southern and Western U.S. These markets are experiencing strong job growth and only modest supply additions, supporting positive cash flow growth. The company is a scale up story, with a $400MM deal pipeline, and has recently refilled the war chest via a $92MM follow-on offering. Despite almost doubling the size of the portfolio via $250MM of acquisitions since IPO’ing in 2014, CIO trades at a bigger discount to peers today than historically and at a big discount to NAV. With ~27% expected return including an 8% dividend, we are initiating coverage with a Buy rating," said Chao.

For an analyst ratings summary and ratings history on City Office REIT click here. For more ratings news on City Office REIT click here.

Shares of City Office REIT closed at $11.74 yesterday.

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