UPDATE: Compass Point Research & Trading Downgrades One Liberty Properties to Neutral, Raises PT

In a report published Friday, Compass Point Research & Trading downgraded its rating on One Liberty Properties (NYSE: OLP) from Buy to Neutral, but raised its price target from $22.00 to $23.50.

Compass Point noted, “We are downgrading shares of OLP to Neutral and raising our price target to $23.50 from $22. While disclosures are minimal, the company did acquire $30 million of assets in 4Q12 at what we assume to be at least 8% cap rates. These transactions follow approximately $10 million in net acquisitions over the previous 7 quarters, are much greater than our previously modeled $7.5 million during the quarter, and should be enough to grow NAV by a little over $1.30/share. Assuming a constant 7.25% on the company's assets and a 30% liquidity discount, we arrive at a $23.50 price target. While this represents a $1.50 increase from our previously published target, upside to our target combined with the recently raised $1.40 annualized dividend only amounts to 11%. As such, we are downgrading shares of OLP to Neutral and we recommend investors look elsewhere for greater dividend and NAV appreciation from current levels.”

One Liberty Properties closed on Thursday at $22.40.