Instinet Downgrades Colony Starwood Homes (SFR) to Neutral; Limited Scope for Improvement
- Futures fall on Trump's protectionist address
- Qualcomm (QCOM) Calls Apple's (AAPL) Claims 'Baseless'
- Unease over Trump sends dollar to one-and-half month low
- Kate Spade (KATE) Said to Attract Interest from Coach (COH) and Michael Kors (KORS) - Bloomberg
- European stocks hit three-week low as Trump reality sets in
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Instinet downgraded Colony Starwood Homes (NYSE: SFR) from Buy to Neutral with a price target of $33.00 (from $38.00), citing a limited scope for further operational improvement.
Analyst Brock Vandervliet commented, "We are downgrading SFR from Buy to Neutral and reducing our TP from $38 to $33. SFR’s stock performance since the merger (SWAY/CAH) in January has been impressive, rising 34%. Our downgrade is based on a combination of incrementally greater concern regarding the potential for higher interest rates, historically a headwind for all REIT stocks, combined with a limited ability to materially improve financial performance. In addition, although we believe there is great long-term consolidation potential in this sector, at this valuation we do not expect large-scale share issuance that would allow SFR a currency for large-scale acquisitions. Following the Q3 print and several discussions with management, we trim our 2017 Core FFO estimate from $1.90 to $1.89 and reduce our target multiple from 20x to 17.5x, with a revised TP of $33. In the BTR space, we favor Altisource Residential, RESI (Buy) which has a substantially more discounted valuation and, in our view, more operational efficiency gains ahead of it."
Shares of Colony Starwood Homes closed at $30.16 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Instinet Downgrades Qualcomm (QCOM) to Neutral
- Goldman Sachs Upgrades CVR Refining (CVRR) to Neutral
- Guggenheim Starts Achaogen (AKAO) at Buy; Positive on Plazomicin Approval, Seen as Takeout Target
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!