UPDATE: KeyBanc Upgrades American Assets Trust (AAT) to Overweight

May 16, 2021 10:18 PM EDT
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Price: $37.39 -1.29%

Rating Summary:
    6 Buy, 1 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 8 | New: 49
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(Updated - May 17, 2021 5:49 AM EDT)

KeyBanc analyst Todd Thomas upgraded American Assets Trust (NYSE: AAT) from Sector Weight to Overweight with a price target of $42.00.

The analyst comments "We are upgrading AAT to Overweight to position for a stronger than expected recovery in the Company's high-quality diversified portfolio located on the West Coast and in Hawaii, as we see potential for a sharp inflection in fundamentals and earnings growth in 2021/2022. In the NT, the Mixed-Use segment (i.e., Embassy Suites on Waikiki Beach) has the greatest earnings power, in our view, with occupancy approaching 70% in recent weeks (up from 47.5% in 1Q21) and Hawaii tourism continuing to build; occupancy at the 80%+ level is a possibility this summer, which should lead to a steady recovery in room rates and RevPAR. An inflection in Retail and Multifamily fundamentals may bolster AAT's fundamental recovery, while office leasing/pre-leasing could act as a catalyst for the stock. We are raising our 2021 and 2022 FFO estimates by 6% and 2%, respectively, and we are raising our NAV estimate to $39.85/sh."

For an analyst ratings summary and ratings history on American Assets Trust click here. For more ratings news on American Assets Trust click here.

Shares of American Assets Trust closed at $34.54 yesterday.


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