UPDATE: Bank of America Downgrades Federal Realty Investment Trust on Limited Near-Term Catalysts

In a report published Friday, Bank of America analyst Jeffrey Spector downgraded Federal Realty Investment Trust (NYSE: FRT) from Buy to Neutral, and lowered the price target from $123.00 to $116.00.

In the report, Bank of America noted, “We are downgrading FRT from Buy to Neutral and lowering our PO to $116 from $123. The lower PO is primarily due to lower NOI estimates. Our PO is based on a 12-month fwd NAV with a 5.2% cap rate to which we apply a 10% premium. In our view the premium is warranted given management and balance sheet strength. We believe FRT has a lack of near term catalysts and similar internal growth to peers in '14 (avg SS NOI est 3% vs. FRT est of 3.2%) but at a richer valuation.”

Federal Realty Investment Trust closed on Thursday at $103.72.