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Mizuho upgrades GGP; Compass Point suspends Wheeler REIT coverage

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Mizuho upgrades GGP; Compass Point suspends Wheeler REIT coverage

Upgrades

Mizuho Securities USA LLC's Haendel St. Juste upgraded GGP Inc. to "buy" from "neutral" in light of a recent Reuters report that diversified commercial real estate company Brookfield Property Partners LP improved its buyout offer for the regional mall real estate investment trust.

St. Juste said in a March 19 note that he continues to expect that a deal will materialize and that the revised offer is a crucial step toward Brookfield Property securing GGP. The analyst added that although he thinks GGP is valued at $26 per share, he increased his per-share price target on the company's stock to $24 from $22 because of a lack of details on the new bid and the incentive for Brookfield Property to "dramatically" improve its offer.


Wells Fargo Securities LLC analyst Jeffrey Donnelly lifted Hospitality Properties Trust to "market perform" from "underperform," while lowering the lodging REIT's stock price target to $25 per share from $28 per share.

Donnelly said he believes Hospitality Properties' peer-leading dividend yield and its recent share price underperformance are likely to set a floor for the company's shares in the near term. Factors such as renovation headwinds in 2018, supply growth and earnings volatility every fourth quarter because of the company's incentive management fee structure, however, will likely continue to present challenges, the analyst said in a March 18 note.

Suspension

Compass Point Research & Trading LLC analyst Steve Manaker suspended coverage of grocery-anchored shopping center landlord Wheeler Real Estate Investment Trust Inc. because of a resources reallocation, according to a March 16 note.

Wheeler REIT recently disclosed that it suspended its dividend for the rest of 2018 as the company conducts a strategic review. It also amended certain of its lease agreements with grocery chains owned by Southeastern Grocers LLC and will recapture some stores after the latter filed for a prepackaged Chapter 11 bankruptcy.