UPDATE: UBS Downgrades American Campus Communities (ACC) to Sell

July 7, 2015 6:46 AM EDT
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Price: $65.42 --0%

Rating Summary:
    10 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 21 | New: 16
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(Updated - July 7, 2015 9:03 AM EDT)

UBS downgraded American Campus Communities (NYSE: ACC) from Neutral to Sell and cut its price target to $35 (from $41).

Analyst Nick Yulico commented, "Despite having the 2nd largest development pipeline in the Student Housing/Multifamily REIT sectors, we estimate ACC will post subpar 5% annual FFO growth in 2016/2017 since future equity funding needs and reduced capitalized interest will create dilution. We think investors are not being compensated for two main risks we see today: 1) Street estimates for 2016 look high to us, with our FY16 FFO estimate 5% below consensus, 2) the stock may continue to have an equity overhang as leverage is higher than peers. Accordingly, we are downgrading ACC to Sell from Neutral and cutting our price target to $35 (from $41)."

For an analyst ratings summary and ratings history on American Campus Communities click here. For more ratings news on American Campus Communities click here.

Shares of American Campus Communities closed at $38.80 yesterday.

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