KeyBanc Upgrades Cedar Shopping Centers (CDR) to Buy

KeyBanc upgraded Cedar Shopping Centers (NYSE: CDR) from Hold to Buy with a price target of $7.50.

Analyst Jordan Sadler said, "CDR has been one of the better turnaround stories in the strip sector over the last few years. It screens as one of the least expensive retail REITs at a 28% 2015 AFFO multiple discount and 7.1% implied cap rate. After selling a significant portion of its property base and rightsizing its platform overall, CDR shifted to offense in recent quarters and has started adding to its retail portfolio; latest additions have been concentrated between the Boston-to-DC corridor."

"Fundamentals have been steady within the Company’s existing grocery-anchored retail portfolio, and we expect the lack of new supply to support continued growth over the next several years. Importantly, our call here is also partially a bet on management; since taking over the Company roughly three years ago, both the Company’s strategic focus and capital allocation have improved and become more transparent. Continued execution should drive in line-to-above average earnings and NAV growth through 2015, which should lead to multiple expansion," he added.

For an analyst ratings summary and ratings history on Cedar Shopping Centers click here. For more ratings news on Cedar Shopping Centers click here.

Shares of Cedar Shopping Centers closed at $6.18 yesterday.

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