BioMed Realty Trust (BMR) Shares Rise 3% After Upgrade

Stifel Nicolaus analysts John W. Guinee and Erin T. Aslakson upgraded their rating of BioMed Realty Trust, Inc. (NYSE: BMR) from a Hold to a Buy with a price target of $16 on Friday.

The Stifel Nicolaus analysts upgraded BioMed Realty Trust price relative to earnings are below those of the REIT industry average, its balance sheet is now delevered under 50% and they believe that generic suburban office asset performance will continue to decline, while BioMed Realty Trust is an attractive alternative.

Although the analysts reduced their value estimates for non-income producing assets, they say the shares are at "attractively priced at Implied Cap Rates of 8.4%/7.8%/7.0% based on NOI, Cash Flow and CF less G&A."

BioMed Realty Trust guidance for 2010 was Funds From Operations of $1.23 to $1.33 per share. Stifel Nicolaus projected Funds From Operations for the company were lowered from $1.30 per share to $1.29 per share.

The stock's 52 week range is $6.02 to $16.96.

The stock ended trading on Friday at $14.87, up more than 3%.