Jefferies Upgrades Highwoods Properties Inc. (HIW) to Buy

Jefferies upgraded Highwoods Properties Inc. (NYSE: HIW) from Hold to Buy with a price target of $49.00 (from $44.00), saying shares trade at a NAV discount.

Analyst Jonathan Petersen commented, "We view HIW as one of the best office operators among the REITs, and as a result the stock tends to trade at a premium to other Suburban Office REITs. That said, HIW currently trades at an NAV discount. The discount, coupled with the recent improvement of the fundamental outlook in HIW markets, creates a unique opportunity to build a position in a company that tends to outperform peers over the longterm. Our proprietary analysis suggests investors may be underestimating the strength of the Southeast markets where HIW has meaningful exposure. As a result, we are upgrading to Buy, raising our 2015 & 2016 FFO/sh estimates to $3.08 & 3.27, from $3.03 & 3.15, respectively, and increasing our price target to $49, from $44."

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

Shares of Highwoods Properties Inc. closed at $43.09 yesterday.

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