D.A.Davidson & Co. analyst James Lykins initiated coverage ofKite Realty GroupTrust with a rating of "buy," and a price target of $33.
The analyst wrote in a research report: "We forecast2016 and 2017 FFOPS of $2.07 and $2.34, respectively. The stock is trading atwhat we view as a very compelling 13x our 2016 FFO estimate, compared to itspeer group trading at 19x 2016 estimates. We also note the stock is trading ata ~12% discount to our NAV estimate of $31.37. We derive our $33 price target usingmultiple of 16x our 2016 forecast, a premium to where the stock is trading nowbut in our view justified given our expectations for FFO growth."