Deutsche Bank Upgrades Duke Realty (DRE) to Buy; Strong Expected Total Return

Deutsche Bank upgraded Duke Realty (NYSE: DRE) from Hold to Buy. PT increased from $13 to $16.

Deutsche analyst says, "We have updated our 2011 and 2012 estimates primarily to reflect the redemption of the preferred shares, and DB’s updated interest rate forecasts. We are now looking for $1.13 in 2011 and $1.15 in 2012, which compares to our prior estimates of $1.12 and $1.11 in 2011 and 2012, respectively. Our target price moves higher given the roll forward of the period over which are target price is based and a reduction in our cap rate assumption to 7.5% from 8.0%. Our updated cap rate assumption is in-line with our estimate for DRE’s closest direct competitor, Liberty Property (NYSE: LRY). With an expected total return of roughly 17%, we are moving to a Buy."

For more ratings news on Duke Realty click here and for the rating history of Duke Realty click here.

Shares of Duke Realty closed at $14.22 yesterday.

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