UPDATE: Jefferies Lowers PT on Associated Estates Realty Following REIT Week

In a report published Tuesday, Jefferies analyst Omotayo Okusanya reiterated a Hold rating on Associated Estates Realty(NYSE: AEC), but lowered the price target from $18.00 to $17.50.

In the report, Jefferies noted, “The overall tone at NAREIT in Chicago was positive from most management teams. If we didn't know any better, it would seem as if the RMZ isn't down ~10% in two weeks on concern that rising interest rates could slow down transactions, increase funding costs and result in higher cap rates. Despite the sell-off, there are still a few bargain hunting opportunities given that valuations still remain somewhat rich (17.5x P/FFO) for the group.”

Associated Estates Realty closed on Monday at $16.17.