Cantor Fitzgerald Starts First Potomac (FPO) at Buy; Government Overhang = Opportunity

FREE Breaking News Alerts from StreetInsider.com!

FPO Hot Sheet

Rating Summary:
6 Buy, 6 Hold, 0 Sell

Rating Trend: Down

Down

Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23

Cantor Fitzgerald initiates coverage on First Potomac (NYSE: FPO) with a Buy. PT $15.00.

Cantor analyst said, "At only 81.8% occupied, we believe that the lease-up of the existing portfolio represents both the potential for forward growth, but more importantly improvement to the company's balance sheet metrics. We are currently forecasting a 2012 year-end occupancy level of 84%. This represents only 295,000 square feet of net leasing, as we concede that the lease-up of First Potomac's portfolio will be slow yet gradual over the coming years. Our NAV calculation includes a lease-up NPV of $1.94 per share, assuming four years to get the portfolio 90% leased."

"First Potomac's portfolio is concentrated in the D.C. Metro area, and the U.S. Government represents the company's largest tenant at 8.5% of annualized revenues. Continued commentary from the federal government concerning the more efficient use of office space and real estate strategies, yet a lack of visible initiatives or action, remain overhangs in the market. However, following the election, 2013 could be a year of increased government decisiveness."

For an analyst ratings summary and ratings history on First Potomac click here. For more ratings news on First Potomac click here.

Shares of First Potomac closed at $13.74 yesterday, with a 52 week range of $11.31-$16.81.

Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!