The multifamily community company was upgraded to top pick from outperform by RBC analysts on Tuesday."We model AVB to issue $500 million of unsecured bonds at 4.75% in 3Q'12, $500 million at 5.0% in 1Q'13, and $300 million at 5.25% in 3Q'13," JPMorgan analysts wrote in a Feb. 15 report. "Given the current rate/spread environment, these should be fairly viewed as pretty conservative. We also assume AVB issues $225 million of equity throughout 2012 and $250 million throughout 2013." Shares of AvalonBay hit a 52-week high Tuesday of $140.61. The stock's 52-week low of $107.54 was set on Oct. 4. AvalonBay has a forward P/E of 43.69; the average for residential real estate investment trusts is 54.07. For comparison, Camden Property Trust (CPT) has a lower forward P/E of 42.51; Essex Property Trust's (ESS) forward P/E is 58.67. Analysts were split on AvalonBay with 11 rating the stock buy, 11 giving it a hold rating and three rating it sell. TheStreet Ratings gives AvalonBay an A- grade with a buy rating and a $154.77 price target. The stock has risen 6.5% year to date.
Estee Lauder "EL's underlying business remained strong in FQ2, but they failed to deliver the expected upside to consensus," JPMorgan analysts wrote in a Feb. 6 report. "Although we think there are areas of upside within their FY12 outlook, with the expected deceleration in some markets and their desire to hold on to share gains, we think management may choose to further dial up spending as opposed to drop it to the bottom line." Shares of Estee Lauder hit a 52-week high Tuesday of $60.85. The stock's 52-week low of $40.76 was set on Oct. 4. Estee Lauder has a forward P/E of 23.43; the average for personal products companies is 15.39. For comparison, both Nu Skin Enterprises (NUS) and Revlon (REV) have lower forward P/Es of 17.74 and 10.05, respectively. Eleven of the 19 analysts who cover Estee Lauder rated it buy; eight analysts gave the stock a hold rating. TheStreet Ratings gives Estee Lauder an A+ grade with a buy rating and $77.32 price target. The stock has risen 8.23% year to date.
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