Wunderlich Securities Raises Estimates On Bluerock Residential Growth REIT On Successful Capital Recycling Expectations

In a report published Wednesday, Wunderlich Securities analyst Craig Kucera reiterated a Buy rating and $15.75 price target on Bluerock Residential Growth REIT Inc (NYSE: BRG).

In the report, Wunderlich Securities noted, “We are raising our 2015 AFFO estimates by $0.04 following a number of capital recycling efforts that Bluerock (BRG) completed in late 4Q14 or is expected to complete in 1Q15. Dispositions thus far have been attractively priced in the 5% cap rate range and are expected to be redeployed into 6%+ yielding assets; furthermore, equity ownership on new assets is likely in the area of 90%+, simplifying the story in our opinion. We maintain our Buy rating and our $15.75 target as BRG continues to create value for investors while streamlining portfolio ownership; our $15.75 target represents 89% of our $17.68 NAV estimate (6% cap rate) and a 12.6x 2015E AFFO multiple.”

Bluerock Residential Growth REIT closed on Tuesday at $12.93.