Benchmark Starts Camden Property Trust (CPT) at Sell; $42 PT

August 20, 2008 3:54 PM EDT

Benchmark Company initiates coverage on Camden Property Trust (NYSE: CPT) with a Sell rating and a $42 price target.

The firm calls Camden's management "a high-caliber, straight-shooting" team. As property fundamentals become more attractive, Benchmark says that this team will be the reason to become more constructive on the stock. Benchmark also likes Camden as it uses "a disciplined approach to delaying construction where necessary on the future development pipeline (31% of GAV vs. 26% peer average)."

Contrarily, Benchmark points out that Camden's portfolio performance has been "significantly sub-par" and expects to see its markets feel "at least some additional job-loss/supply-related pain in 2H08 and 1H09."

On a valuation basis, Benchmark calls Camden relatively expensive as it currently trades at only a 3% discount to the firm's forward NAV estimate of $49.83, versus an average 10% discount for its peer group. The firm believes a discount of 15% on its forward NAV would be appropriate at this time.

Camden Property Trust operates as a real estate investment trust (REIT) in the United States.

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