FBR CapitalMarkets & Co. analyst Patrick Kealey Jr. initiated coverage of with a ratingof "outperform," and a price target of $47.

The analystwrote in a research report: "Education Realty has realized significantbenefits from its portfolio reorientation over the past several years, and we believethe shift to more desirable, and profitable, assets bodes well for same-store resultsin the years ahead. When we add in what we see as a strong backdrop for enrollmentgrowth across the U.S., we believe the private student housing industry, EducationRealty included, should see meaningful growth in units and asset values over thelong term. Overall, we believe that EDR represents a compelling total return storyfor investors over the next 12 months, given the company's developmental expertiseand favorable capital position. That said, we believe the shares are undervaluedat current levels."