Cantor Fitzgerald Starts Home Properties (HME) at Sell; Testing Tenant Temerity
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Price: $75.24 --0%
Rating Summary:
6 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 8
Rating Summary:
6 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 8
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Cantor Fitzgerald initiates coverage on Home Properties (NYSE: HME) with a Sell. PT $59.50.
Cantor analyst said, "While our rating is primarily valuation driven, there are issues of concern, including: 1) we view the company as increasingly straying from core "C-to-B" high-yield strategies, 2) core markets screen poorly for employment and population growth, and 3) our analysis suggests rent growth trajectories are likely to flatten sooner than peers...Potential macroeconomic deterioration is the key risk to our thesis. Recall, Home is an owner/operator of "B/C" apartments, with Mid-Atlantic and metro NY concentrations. Given that Home tenants are not likely to buy houses in today's environment, there is an inherent stickiness (defensiveness) that investors find attractive in a downdraft - although these same low beta characteristics limit upside, as well."
For an analyst ratings summary and ratings history on Home Properties click here. For more ratings news on Home Properties click here.
Shares of Home Properties closed at $59.32 yesterday.
Cantor analyst said, "While our rating is primarily valuation driven, there are issues of concern, including: 1) we view the company as increasingly straying from core "C-to-B" high-yield strategies, 2) core markets screen poorly for employment and population growth, and 3) our analysis suggests rent growth trajectories are likely to flatten sooner than peers...Potential macroeconomic deterioration is the key risk to our thesis. Recall, Home is an owner/operator of "B/C" apartments, with Mid-Atlantic and metro NY concentrations. Given that Home tenants are not likely to buy houses in today's environment, there is an inherent stickiness (defensiveness) that investors find attractive in a downdraft - although these same low beta characteristics limit upside, as well."
For an analyst ratings summary and ratings history on Home Properties click here. For more ratings news on Home Properties click here.
Shares of Home Properties closed at $59.32 yesterday.
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