UPDATE: MLV & Co Initiates Coverage on AmREIT on Quality at a Compelling Discount

In a report published Tuesday, MLV & Co analyst Paul Morgan initiated coverage on AmREIT (NYSE: AMRE) with a Buy rating and $21.00 price target.

In the report, MLV & Co noted, “AmREIT's ‘Irreplaceable Corner' shopping center investment strategy targets high-traffic, infill assets located in higher growth Sunbelt markets. At current valuations, we argue that AMRE offers retail REIT investors coastal quality portfolio demographics at a Sunbelt price, reflected in a 7% implied cap rate and nearly 5% dividend yield.

"We favor management's focused investment strategy, including asset densifications as part of a redevelopment pipeline that should provide catalysts for valuation upside. We initiate coverage with a Buy rating and $21 price target.”

AmREIT closed on Monday at $16.30.