Wells Fargo Starts Associated Estates Realty (AEC) at Outperform; Strengthening Fundamentals and Attractive Lending Terms
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Price: $4.23 -2.31%
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on Associated Estates Realty (NYSE: AEC) with a Outperform. $19-20 valuation range.
Wells analyst says, "We are establishing 2011 and 2012 FFO per share estimates of $1.05 and $1.22, respectively. While on a fundamental basis we would prefer companies with more volatile, East/West coast-concentrated portfolios (given stronger momentum and growth to the upside), the company’s current implied cap rate discount to the peer group average is unwarranted in our view, particularly as the GSEs continue to lend at attractive rates across all markets. Further, we believe rising interest rates will likely favor valuations of those companies trading at higher implied cap rates as the larger spread absorbs at least some of the initial rate increase."
For more ratings news on Associated Estates Realty click here and for the rating history of Associated Estates Realty click here.
Shares of Associated Estates Realty closed at $16.82 yesterday.
Wells analyst says, "We are establishing 2011 and 2012 FFO per share estimates of $1.05 and $1.22, respectively. While on a fundamental basis we would prefer companies with more volatile, East/West coast-concentrated portfolios (given stronger momentum and growth to the upside), the company’s current implied cap rate discount to the peer group average is unwarranted in our view, particularly as the GSEs continue to lend at attractive rates across all markets. Further, we believe rising interest rates will likely favor valuations of those companies trading at higher implied cap rates as the larger spread absorbs at least some of the initial rate increase."
For more ratings news on Associated Estates Realty click here and for the rating history of Associated Estates Realty click here.
Shares of Associated Estates Realty closed at $16.82 yesterday.
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