MLV & Co Remains Positive On DDR Corp Amid CEO Transition

In a report published Friday, MLV & Co analyst Paul Morgan reiterated a Buy rating and $20.00 price target on DDR Corp (NYSE: DDR).

In the report, MLV & Co noted, “After the close, DDR announced that CEO Dan Hurwitz will be leaving the firm, as the Board and Mr. Hurwitz ‘have agreed not to renew his employment agreement' which expires at the end of 2015. While the timing of the departure is unexpected and Hurwitz deserves credit for helping to turn around DDR following the recession, we strongly believe that the company benefits from a deep management bench, led in particular by President & CFO David Oakes and Paul Freddo, head of leasing and development. With Hurwitz's contract running through the end of 2015, the Board has more than ample time to undertake its search (which explicitly includes internal candidates), though as in any CEO transitions, we view speed as an important consideration given the pauses in strategic decision-making that take place during interim periods. With a smooth transition process expected, a strong in-place team, and no financial issues precipitating the move, we would buy DDR on any weakness related to the news, and reiterate our $20 price target.”

DDR Corp closed on Thursday at $17.82.