Ramco-Gershenson Receives a Sell from Boenning & Scattergood


Boenning & Scattergood analyst Floris van Dijkum maintained a Sell rating on Ramco-Gershenson (NYSE: RPT) today and set a price target of $11.50. The company’s shares closed on Friday at $11.87, close to its 52-week low of $11.34.

van Dijkum noted:

“We expect the new leadership will likely pursue a lower leverage strategy as RPT’s shares trade at a substantial discount to NAV. Based on our estimates, dispositions of $200-$300 million over the next 18 months would lower the company’s leverage by more than a full turn to around 6 times. Candidates for disposition would include the company’s remaining non-Detroit MSA properties in Michigan as well its smallest 20 assets – that taken together represent approximately $300 million of value – but this would likely be less efficient to manage and harder to expand or drive growth.”

According to TipRanks.com, Dijkum is a 3-star analyst with an average return of 2.0% and a 51.5% success rate. Dijkum covers the Financial sector, focusing on stocks such as Pennsylvania Real Estate ate Investment, Retail Properties of America Inc, and General Growth Properties Inc.

Ramco-Gershenson has an analyst consensus of Hold, with a price target consensus of $12.67.

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Ramco-Gershenson’s market cap is currently $943.4M and has a P/E ratio of 17.20. The company has a Price to Book ratio of 1.23.

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Ramco-Gershenson Properties Trust operates as a real estate investment trust. It develops, manages, and leases out commercial properties. The company’s portfolio includes shopping centers, supermarkets, and retail shops. Ramco Gershenson Properties was founded on May 1, 1996 and is headquartered in Farmington Hills, MI.

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