UPDATE - UBS Downgraded Kimco (KIM) to Neutral; No Longer See a Catalyst for Incremental Upside

UPDATE - UBS downgraded Kimco (NYSE: KIM) from Buy to Neutral. PT $19 unchanged.

UBS analyst says, "The relative and absolute valuation discount that had existed for Kimco was based on low expectations for fundamental performance and perceived balance sheet risk. But as the company has continued to execute on both fronts, and negative perception around big box demand has subsided, the valuation has right-sized in our view. Going forward, we expect average SS NOI growth of 2-3% but little external growth and some dilution from asset sales, implying core FFO growth of 4-5%. Also, we see some risk to perception associated with Kmart/Sears (Nasdaq: SHLD) exposure."

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