The Plano, TX-based real estate investment trust invests in, develops and operates multi-family communities.
"Monogram offers an extremely high quality portfolio at about a 12% discount to NAV. Additionally, we estimate the company's development pipeline will drive close to $1 per share in value creation as the assets achieve stabilization, yielding an attractive value proposition," the firm wrote in an analyst note.
But Canaccord sees near-term headwinds eroding the company's NAV discount.
"Those headwinds include: 1) a retail shareholder base that is in the money around $10 per share, causing selling pressure; 2) a preferred equity hurdle return that puts a near-term cap on the stock at around $11.50, in our view; and 3) a development pipeline that won't stabilize until 2H17," the firm said.
Canaccord believes the stock could be "great" to own in the back half of 2017 as these headwinds burn off and development net operating income ramps to stabilization.
Shares of Monogram closed at $9.86 on Monday.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MORE