FBR Capital Starts Developers Diversified Re (DDR) at Outperform; Pruning and De-leveraging Should Improve Longer-Term Outlook

FBR Capital initiates coverage on Developers Diversified Re (NYSE: DDR) with an Outperform. PT $15.50.

FBR analyst says, "We base our investment thesis on our NAV valuation of $14.25 per share and the applied premium to NAV of 8%. While we believe core portfolio growth can be positive, de-levering is necessary through nonprime asset sales, leading to below-average earnings and cash flow growth in the near term. A fundamental recovery in the company’s primary markets may be under way, but a secondary market recovery and shop space lease-up may realistically be 2012–13 events. Nevertheless, recent management changes bode well, and DDR’s valuation remains compelling for the long-term patient investor."

For more ratings news on Developers Diversified Re click here and for the rating history of Developers Diversified Re click here.

Shares of Developers Diversified Re closed at $13.68 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• BofA sees Micron EPS topping $230 by FY30, calls peak fears overblown
• Seaport Global Securities Downgrades JetBlue Airways (JBLU) to Neutral
• BofA Securities Reiterates Buy Rating on Micron Technology (MU); Sees $230+ in EPS by FY30