Compass Point Raises Price Target on Equity Residential (EQR); Overhang Removed

Compass Point reiterates a 'Neutral' on Equity Residential (NYSE: EQR) price target raised from $57.50 to $61.50.

Analyst, Wilkes Graham, said, "We are incrementally more positive on EQR's valuation, but still believe the stock is fairly valued at current levels. Last week's announcment that the company will not be buying a stake in Archstone not only earns the company $150M, but also removes the overhang in the stock that had persisted since the company originally announced its intention to bid on the stake back in November 2011. Our price target is based on a slightly lowered cap rate of 5.40% on the portfolio, $1.67/share of development PV, $150 milloin in expected breakup fees, and a 20% premium to our resulting $51.22 NAV estimate. Including the dividend, our price target represents 1% total return downside at current trading levels."

Raises FY13 FFO from $3.04 to $3.07.

For an analyst ratings summary and ratings history on Equity Residential click here. For more ratings news on Equity Residential click here.

Shares of Equity Residential closed at $62.53 yesterday.

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