Janney Montgomery Scott Upgrades Essex Property Trust (ESS) to Buy
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Price: $152.41 -2.06%
Rating Summary:
9 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
9 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade ESS Now!
Janney Montgomery Scott upgrades Essex Property Trust (NYSE: ESS) to Buy. Price target $87.
Janney analyst says, "We are upgrading Essex to BUY following the stock's near 10% decline over the last three weeks, versus a 5% drop for its peers. We believe investor trepidation over the California job market has resulted in skepticism over Essex's ability to see a recovery in rental rates. We viewESS' recent pullback as an opportunity to accumulate shares of a premium operator in the REIT sector with a well-respected, cycle-tested management team. We expect rent declines in Essex's portfolio to moderate through the next three quarters, turning positive by 2011. The REIT's strategy of maintaining sector-high occupancy through the recession has afforded it the opportunity to test the market rate and could lead to rent stability earlier. We look for ESS to supplement same-store growth in 2011 with acquisitions made in 2010; Essex currently has $175M in assets under contract, and we expect the REIT to source additional transactions using relationships developed over the company's nearly 40-year history of ESS operating on the West Coast."
To see all the upgrades/downgrades on shares of ESS, visit our Analyst Ratings page.
Janney analyst says, "We are upgrading Essex to BUY following the stock's near 10% decline over the last three weeks, versus a 5% drop for its peers. We believe investor trepidation over the California job market has resulted in skepticism over Essex's ability to see a recovery in rental rates. We viewESS' recent pullback as an opportunity to accumulate shares of a premium operator in the REIT sector with a well-respected, cycle-tested management team. We expect rent declines in Essex's portfolio to moderate through the next three quarters, turning positive by 2011. The REIT's strategy of maintaining sector-high occupancy through the recession has afforded it the opportunity to test the market rate and could lead to rent stability earlier. We look for ESS to supplement same-store growth in 2011 with acquisitions made in 2010; Essex currently has $175M in assets under contract, and we expect the REIT to source additional transactions using relationships developed over the company's nearly 40-year history of ESS operating on the West Coast."
To see all the upgrades/downgrades on shares of ESS, visit our Analyst Ratings page.
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