Cantor Fitzgerald Downgrades Parkway Properties (PKY) to Sell

January 24, 2013 6:51 AM EST Send to a Friend
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Price: $19.64 +1.55%

Rating Summary:
    6 Buy, 6 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Cantor Fitzgerald downgraded Parkway Properties (NYSE: PKY) from Hold to Sell with a price target of $15.00 (from $14.00).

The firm comments, "The stock has significantly outperformed year to date, returning 13% compared to 5% among office REITs and 4% for REITs overall (as well as 51% of outperformance over the prior 12 months). PKY continues to take significant strides in improving both the portfolio and balance sheet. The recent run in the stock is over- done, in our view, and is likely the result of the aforementioned improvements, coupled with the ongoing "beta rally." We have updated our earnings and valuation estimates to account for announced acquisitions and to credit lease-up of acquired vacancy. The stock is now trading at an approx. ~7.1% implied cap rate, which our models suggest is rich. Our new price target implies a total return of -2.3%, which is below our current midpoint expectation for REITs overall (+3.8%)."

For an analyst ratings summary and ratings history on Parkway Properties click here. For more ratings news on Parkway Properties click here.

Shares of Parkway Properties closed at $15.82 yesterday.


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