Credit Suisse 'Very Positive' On U.S. REITs: Upgrades Seven Stocks, Downgrades Three

Ian Weissman of Credit Suisse commented in a note on Thursday that REITs stocks are "attractively valued" relative to the "strong underlying performance" and valuation of real estate across the United States. This, coupled with a "constructive" macroeconomic backdrop and the fear of higher rates off the table (for now), the backdrop is "very good" for REIT investors.

Weissman added five reasons on why he remains positive on REITs:

1. Sentiment around REITs have more than "reset" in anticipating of a September Fed Funds hike.

2. The forward treasury curve and inflation measures show "little market concerns" that rates will move "materially" higher in the near-term.

3. REITs are trading at an eight percent discount to NAV (net asset value) versus a 1 percent premium historically.

4. Fundamentals/SSNOI (same-store net operating income) remain better than expected.

5. The bid for real estate in the private market remains "very strong."

Analyst Upgrades

• Shares of AvalonBay Communities Inc (NYSE: AVB) were upgraded to Outperform from Neutral with a price target raised to $200 from a previous $193.
• Shares of General Growth Properties Inc (NYSE: GGP) were upgraded to Outperform from Neutral with a newly established $33 price target.
• Shares of Federal Realty Investment Trust (NYSE: FRT) were upgraded to Outperform from Neutral with a newly established $157 price target.
• Shares of AvalonBay Communities Inc (NYSE: AVB) were upgraded to Outperform from Neutral with a price target raised to $200 from a previous $193.
• Shares of Vornado Realty Trust (NYSE: VNO) were upgraded to Neutral from Underperform with a price target raised to $108 from a previous $107.
• Shares of Corporate Office Properties Trust (NYSE: OFC) were upgraded to Neutral from Underperform with a price target raised to $25.50 from a previous $25.
• Shares of Regency Centers Corp (NYSE: REG) were upgraded to Neutral from Underperform with a newly established $70 price target.

Analyst Downgrades

• Shares of Camden Property Trust (NYSE: CPT) were downgraded to Neutral from Outperform with a price target raised to $88 from a previous $87.
• Shares of Eastgroup Properties Inc (NYSE: EGP) were downgraded to Neutral from Outperform with a price target lowered to $65 from a previous $69.
• Shares of UDR, Inc. (NYSE: UDR) were downgraded to Underperform from Neutral with a newly established $36 price target.