Jefferies Raises Price Target on Equity Residential (EQR), Notes 2012 Guidance Will Be Critical
Tweet
Share
E-mailGet Alerts EQR Hot Sheet
Price: $65.97 --0%
Rating Summary:
12 Buy, 29 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 29 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Jefferies is maintaining its Hold rating on shares of Equity Residential (NYSE: EQR) while raising its price target from $50 to $54.
The firm reports that EQR's near term outlook and fundamentals remain strong, but believes these are already priced into the stock. Jefferies does not that investors are pricing shares of EQR as if everything will go smoothly, resulting in an unfavorable risk/reward story. Comps in 2012 continue to be one of Jefferies major concerns.
An analyst at Jefferies comments, "We believe developments could begin to play a more meaningful external growth role in 2012 given strong apartment fundamentals. We note that EQR will have ~$600 million development starts in 2011 and is generating stabilized yields of 6-7 percent on new developments. In contrast, cap rates on acquisitions have been trending lower to the mid-to-low 4s."
The firm is lifting its FY11 and FY12 FFO estimates slightly from $2.42 and $2.72 to $2.43 and $2.75.
For more ratings news on Equity Residential click here and for the rating history of Equity Residential click here.
Shares of Equity Residential closed at $58.75 yesterday.
The firm reports that EQR's near term outlook and fundamentals remain strong, but believes these are already priced into the stock. Jefferies does not that investors are pricing shares of EQR as if everything will go smoothly, resulting in an unfavorable risk/reward story. Comps in 2012 continue to be one of Jefferies major concerns.
An analyst at Jefferies comments, "We believe developments could begin to play a more meaningful external growth role in 2012 given strong apartment fundamentals. We note that EQR will have ~$600 million development starts in 2011 and is generating stabilized yields of 6-7 percent on new developments. In contrast, cap rates on acquisitions have been trending lower to the mid-to-low 4s."
The firm is lifting its FY11 and FY12 FFO estimates slightly from $2.42 and $2.72 to $2.43 and $2.75.
For more ratings news on Equity Residential click here and for the rating history of Equity Residential click here.
Shares of Equity Residential closed at $58.75 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AvalonBay and Equity Residential shareholders approve merger
- UBS Reiterates Buy Rating on HF Sinclair (DINO)
- Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & CoSign 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!
