UPDATE: Stifel Upgrades Brandywine Realty Trust on Multiple Positive Factors

In a report published Friday, Stifel analyst John Guinee upgraded the rating on Brandywine Realty Trust (NYSE: BDN) from Hold to Buy, and named a $14.00 price target.

In the report, Stifel noted, “We are upgrading BDN from Hold to Buy based on: 1) attractive valuation relative to our suburban office REIT coverage reinforced by our recent update to Replacement Cost valuations in ‘Replacement Cost - Office & Industrial - Conference Call - Sept 4th, 2pm', 2) the pending acquisition of its JV partners' (TPGI, NR, $6.00) 75% share of One and Two Commerce Square in Philadelphia for $175/SF, a 61.1%/44.5% discount to gross/adjusted replacement cost of $450/$315/SF, 3) the possible acquisition of Four Points Centre in Austin for $217/SF, a 13%/4% discounts to gross/adjusted replacement cost, 4) BDN's anticipated contribution of part or all of its existing 1.4mm SF of suburban Austin office buildings into a JV, and 5) continued execution on BDN's strategy to reduce exposure to generic suburban office markets while increasing presence in amenity-rich submarkets and urban locations.”

Brandywine Realty Trust closed on Thursday at $12.46.