Deutsche Bank Upgrades BRE Properties (BRE) to Buy; Valuations Look More Attractive After Recent Pullback

Deutsche Bank upgraded BRE Properties (NYSE: BRE) to Buy with a price target of $53.00.

Deutsche analyst says, "Having both pulled back by 13% since August 31, BRE and AvalonBay Communities (NYSE: AVB) are now trading at implied cap rates of 5.7% and 4.8%, respectively, which compare favorably to coastal market multifamily direct cap rates in the low-4% range. With upside potential to our target prices of 22% for BRE and 15% for AVB, and in conjunction with our “Rent or Buy” report released today which highlights the relative attractiveness of their markets, we are taking this opportunity to upgrade both stocks...For BRE, we are tweaking our 2011 and 2012 FFO estimates to $2.13 (from $2.12) and $2.37 (from $2.38), respectively."

For more ratings news on BRE Properties click here and for the rating history of BRE Properties click here.

Shares of BRE Properties closed at $43.59 yesterday.

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