Analyst upgrades:

• Janney Montgomery upgraded Aqua America (NYSE: WTR) to Buy from Neutral on valuation, viewing the recent weakness as a buying opportunity. The firm has a $19 target on the stock.
• UBS upgraded Gildan Activewear (NYSE: GIL) to Buy from Neutral due to customer Broder's improved liquidity and the improved outlook for margins.
• RBC Capital upgraded State Street (NYSE: STT) to Top Pick from Outperform and raised its target to $55 from $40. The analyst said the $2B capital raise addresses TCE ratio concerns and large unrealized losses in the investment portfolio.
• Sherwin-Williams (NYSE: SHW) was upgraded to Overweight from Neutral at JP Morgan.
• Advance Auto Parts (NYSE: AAP) was upgraded to Buy from Underperform at Banc of America/Merrill.
• M&T Bank (NYSE: MTB) was upgraded to Outperform from Market Perform at Bernstein.

Continue reading Analyst upgrades, downgrades and initiations: WTR, GIL, STT, EHTH, AKZOY, MEOH, UTHR and HGG

Analyst upgrades, downgrades and initiations: WTR, GIL, STT, EHTH, AKZOY, MEOH, UTHR and HGG originally appeared on BloggingStocks on Tue, 19 May 2009 11:00:00 EST. Please see our terms for use of feeds.

The Forbes/Slatin Real Estate Report, edited by industry expert Peter Slatin, is a professional-level newsletter geared to the more sophisticated real estate investor.

Along with his own insights and advice on investment opportunities in the sector, one feature of the service is its monthly interviews with REIT-sector equity analysts. Below, I share some highlights from Slatin's interview with Jordan Sadler of KeyBanc Capital, who discusses some of his current favorite ideas among REITs.

FORBES/SLATIN: KeyBanc is focused on the U.S. What are you seeing here?

SADLER: My view, initiated last October, was a cautious outlook overall. The recent M&A squeezed shares. We continue to feel that way. REITs are trading at a level where it's hard to justify incremental investment across the space, although you can be tactical with names that are more attractive.

FORBES/SLATIN: In your universe of tactical moves, what stands out?

SADLER: Our top pick was Digital Realty Trust (NYSE: DLR), and it continues to be. It has fundamental drivers that are significantly differentiated from most of their REIT brethren. That, in theory, should be able to generate excess profit until competition gets hip, which seems to be slowly happening. For their type of building, there is limited supply, and a ton of demand, from financial services, Internet and enterprise companies and channel users.

Continue reading The right REITs

The right REITs originally appeared on BloggingStocks on Fri, 25 May 2007 13:45:00 EST. Please see our terms for use of feeds.