UPDATE: Wunderlich Securities Initiates Coverage On Bluerock Residential Growth REIT On Unique Shareholder Value

In a report published Wednesday, Wunderlich Securities analyst Craig Kucera initiated coverage on Bluerock Residential Growth REIT (NYSE: BRG) with a Buy rating and $16.50 price target.

In the report, Wunderlich Securities noted, “We are initiating coverage of Bluerock Residential Growth REIT, Inc. (BRG) with a Buy rating and a $16.50 price target. BRG is an externally managed apartment REIT that leverages its advisors' wide-ranging network of relationships to source and co-invest in multifamily assets where management can create value from day one through a low cost basis involving a number of distinctive strategies.

"Our price target applies a multifamily average NAV discount of 7% to our $17.75 NAV estimate, which we derive by applying a 6% cap rate to the portfolio, and is substantiated by our DCF valuation in excess of $18. At $16.50, BRG would trade in line on FFO/AFFO multiples with multifamily REIT peers with <$1B market cap.”

Bluerock Residential Growth REIT closed on Tuesday at $13.33.