UBS Maintains a 'Sell' on Home Properties (HME); DC / Baltimore Exposure Remains A Concern
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Price: $75.24 --0%
Rating Summary:
6 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Sell' on Home Properties (NYSE: HME) price target raised $4 to $57.
UBS analyst says, "Our concerns surrounding the resiliency of HME’s ‘class-B’ renter-by-necessity tenant base remain in-place. While SS revenue guidance of +4.5% for DC / Baltimore is still solid (53% of NOI), we believe the guidance will be difficult to beat and foresee growth slowing heading into 2013. We think shares remain range-bound at best, with the risk/reward skewed modestly to the downside following the recent run as core growth remains the lowest of the peers and Washington DC / Baltimore concerns are likely to persist – if not intensify."
"We are increasing our 2012 FFOPS estimate to $3.90 (from $3.79) primarily driven by lower interest expense and a modest increase to our ‘core’ assumptions with +4.3% SS revenue growth, +3.8% expense growth, driving SS NOI up 4.8%." (FY13 raised from $4.08 to $4.15)
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 $60.64 yesterday.
UBS analyst says, "Our concerns surrounding the resiliency of HME’s ‘class-B’ renter-by-necessity tenant base remain in-place. While SS revenue guidance of +4.5% for DC / Baltimore is still solid (53% of NOI), we believe the guidance will be difficult to beat and foresee growth slowing heading into 2013. We think shares remain range-bound at best, with the risk/reward skewed modestly to the downside following the recent run as core growth remains the lowest of the peers and Washington DC / Baltimore concerns are likely to persist – if not intensify."
"We are increasing our 2012 FFOPS estimate to $3.90 (from $3.79) primarily driven by lower interest expense and a modest increase to our ‘core’ assumptions with +4.3% SS revenue growth, +3.8% expense growth, driving SS NOI up 4.8%." (FY13 raised from $4.08 to $4.15)
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 $60.64 yesterday.
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