TSX:PRV.DB - Post by User
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CanSiamCypon Dec 17, 2021 11:08am
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Post# 34240654
BMO analyst update
BMO analyst updateUpgrading to Outperform; Maintaining $7.50 Target Price
Bottom Line:
We are upgrading PROREIT to Outperform (from Market Perform) to reflect its attractive forecast total return of 25%, which we view as favourable on both an absolute and relative basis among the Canadian REITs under coverage. Please see our 2022 outlook report "2022 Outlook: Boosters to Support Another Positive Year" for a detailed discussion of our updated views for the Canadian REIT sector.
Key Points
Increasing weighting to industrial asset class. PROREIT has grown significantly through acquisition and increased its weighting to the industrial asset class to twothirds of cash flow; its concentration in secondary industrial markets such as Dartmouth (Halifax), Winnipeg, and Moncton position it well to benefit from strong fundamentals observed across the board for industrial assets.
Maintaining $7.50 target price. Our target price for PROREIT is unchanged at $7.50, which equates to a forecast total return of 25% (including a 7.1% distribution yield). This forecast total return ranks favourably on an absolute basis and relative to its diversified commercial REIT peers and the Canadian REIT sector weighted average of 17%.