CIBC World Upgrades PS Business Parks
CIBC World Markets upgrades PS Business Parks (PSB ) to strong buy from buy. Late last week, the company acquired MetroPark North in Rockford, Md., for about $172 million.
Analyst Michael Mueller upgrades the stock on expected increased cash flow from the MetroPark North deal. He says the deal should add incremental $0.30 per share annually to the current run rate. He raises $3.14 '01 funds from operations (FFO) estimate to $3.15, and $3.40 '02 estimate to $3.50. He notes that the former '02 estimate assumed just $125 million of acquisitions that were spread throughout the year; the company's fourth quarter purchases of MetroPark North and Cornell Oaks Corporate Center alone have already exceeded his '02 full-year projection
He raises $31 price target to $36.