Wells Fargo Starts Associated Estates Realty (AEC) at Outperform; Strengthening Fundamentals and Attractive Lending Terms
Tweet
Share
E-mailGet Alerts AEC Hot Sheet
Price: $4.66 +8.12%
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Needham Starts Faeth Therapeutics (FTH) at Buy
- Truist Securities Starts Matthews International (MATW) at Hold, 'We see risk/reward as more balanced'
- Keefe, Bruyette & Woods Resumes Bank of Nova Scotia (BNS:CN) (BNS) at Outperform
Create E-mail Alert Related Categories
New CoverageRelated Entities
Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
