Jefferies' analyst Jonathan Petersen initiated a B
Post# of 29
Posted On: 01/22/2016 10:33:37 AM
Jefferies' analyst Jonathan Petersen initiated a Buy today on $FR First Industrial Reality Trust with a price target of $23.
""We see multiple catalysts on the horizon for FR, which should help move the stock higher. While leverage is back to investment grade levels, the company still has in-place debt that can be refinanced at much more attractive rates – we see about 5% upside to FFO/sh over the next two years through refinancing maturing debt. Additionally, we see significant upside to the dividend in 2016 and 2017, as the company has been benefitting from carryforwards of prior year losses to keep dividend payout, as a percent of AFFO, at very low levels (~50%). Finally, we view FR as the most likely Industrial REIT in our coverage to receive a takeout bid, and we don’t believe management would try to thwart any attempt, assuming it’s at a fair price – the recent announcement that Bruce Duncan, CEO, would retire at the end of the year and move to the Chairman role on the Board could be a catalyst for private equity shops to take a closer look at FR.""
http://www.streetinsider.com/Analyst+Comments..._client=st
""We see multiple catalysts on the horizon for FR, which should help move the stock higher. While leverage is back to investment grade levels, the company still has in-place debt that can be refinanced at much more attractive rates – we see about 5% upside to FFO/sh over the next two years through refinancing maturing debt. Additionally, we see significant upside to the dividend in 2016 and 2017, as the company has been benefitting from carryforwards of prior year losses to keep dividend payout, as a percent of AFFO, at very low levels (~50%). Finally, we view FR as the most likely Industrial REIT in our coverage to receive a takeout bid, and we don’t believe management would try to thwart any attempt, assuming it’s at a fair price – the recent announcement that Bruce Duncan, CEO, would retire at the end of the year and move to the Chairman role on the Board could be a catalyst for private equity shops to take a closer look at FR.""
http://www.streetinsider.com/Analyst+Comments..._client=st
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