UBS Maintains a 'Neutral' on Parkway Properties (PKY); Discount to Persist as Uncertainty Remains

UBS maintains a 'Neutral' on Parkway Properties (NYSE: PKY) price target lowered from $13.50 to $10.50.

UBS analyst says, "Currently trading at a 10.6% implied cap rate, 18x ’12 AFFO and a 42% discount to our FWD NAV estimate; shares of PKY screen cheap on a relative and absolute basis. That said we believe the current discount to NAV will persist as dilutive asset sales continue and the market awaits the unveiling of a new strategic plan in early 2012 from the new management team."

"Clarity could be a catalyst, but the story remains overly complicated: While the expected announcement of a rebranding and repositioning strategy as well as additional clarity on future assets sales could act as a catalyst for the shares, we continue to believe the PKY story has become overly complicated given the company’s size and market focus, further inhibiting closure of the current valuation gap to NAV."

For an analyst ratings summary and ratings history on Parkway Properties click here. For more ratings news on Parkway Properties click here.

Shares of Parkway Properties closed at $9.70 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Cullinan Oncology Inc. (CGEM) PT Raised to $27 at UBS
• BofA Securities Reiterates Buy Rating on Micron Technology (MU); Sees $230+ in EPS by FY30
• Deutsche Bank Downgrades Netskope (NTSK) to Hold on Valuation