Jefferies Raises Price Target on Associated Estates Realty (AEC), Compelling Valuation

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AEC Hot Sheet

Rating Summary:
7 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38

Jefferies is reiterating its Buy rating on shares of Associated Estates Realty (NYSE: AEC) following its Q2 earnings, and is raising its price target by $1 to $21.

The firm is anticipating that AEC will increase the number of acquisitions and new development projects in the second half of the year. One project includes a new 104-unit luxury property in Dallas, TX, may begin in 2012. The company believes that it will be able to complete these acquisitions without raising any additional capital.

Jefferies is raising its 2011 and 2012 FFO estimates from $1.07 and $1.23 to $1.10 and $1.30.

An analyst at Jefferies comments that its valuation remains compelling given its, "expectations of 2011 FFO/sh above the high-end of mgmt's guidance, our forecast of 27%/17% FFO growth in 2011/2012, and an attractive and well covered dividend which we expect to grow by ~10% in 2012/2013."

For more ratings news on Associated Estates Realty click here and for the rating history of Associated Estates Realty click here.

Shares of Associated Estates Realty closed at $18.22 yesterday, with a 52 week range of $12.80-$18.85.

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