Deutsche Bank Downgrades DDR Corp. (DDR) to Hold

Deutsche Bank downgraded DDR Corp. (NYSE: DDR) from Buy to Hold with a price target of $17.00 (from $19.00) as disposition activity continues to weigh on growth.

Analyst Vin Chao commented, "We are moving to the sidelines on DDR for the first time in years as we believe many of the positive catalysts that we thought would drive a compression of the current multiple gap to peers are now in the past and we see few new positive catalysts going forward that would improve DDR’s relative valuation. Additionally, we think there are several downside catalysts that could pressure the stock near-term including: 1) Downward estimate revisions on the back of another year of net dispos with DDR typically providing initial 2016 guidance in early January and 2) continued headline and operating risk from DDR’s exposure to Puerto Rico of about 14% and rising as US assets are sold. We have updated our estimates to reflect higher net dispos in 2016 than we previously-modeled and a reduction in our assumed development yields. The net impact is a reduction in our 2016 FFO estimate which now assumes no growth y/y and a $2 reduction in our target price. With an expected total return of just 5%, we are moving to Hold from Buy."

For an analyst ratings summary and ratings history on DDR Corp. click here. For more ratings news on DDR Corp. click here.

Shares of DDR Corp. closed at $17.04 yesterday.

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