UPDATE: ISI Raises Douglas Emmett's PT

According to a recent research report, ISI has increased Douglas Emmett Inc.'s PT (NYSE: DEI) from $21.50 to $22.50 based on increases to other estimates.

ISI explained in the report, “We are increasing our forward NAV estimate by 8% to $23/sh (based on a blended cap rate of 5.8% which underwrites DEI's portfolio to a 7.25% unleveraged IRR which is down 25bp from our prior assumption). Our DCF estimate increases by 2% to $25/sh after a relatively in-line quarter. Based on the increase to our NAV and DCF estimates and an improvement in the targeted multiple and price to NAV, we are increasing our PT by $1 to $22.50/sh. However, we are maintaining our Hold rating on DEI and expect the shares to underperform tomorrow given what we perceived to be “OK” but not great leasing results for a stock which had high expectations coming into the quarter and is up more than 18% since the beginning of December and outperformed the RMZ index by more than 500bp over the past two months.”

Douglas Emmett closed yesterday at $21.27.