October 19, 2012 at 09:49 AM EDT
Jefferies Downgrades Mid America Apartment Communities to a “Hold” (MAA)

Jefferies has downgraded real estate investment trust, Mid America Apartment Communities Inc.(MAA) to a “Hold” Friday.

The firm has downgraded MAA from a “Buy” to a “Hold,” and have decreased their price target from $80 to $70. This price target suggests a 7% increase over the stock’s current price of $65.13, and a 10% increase over the stock’s YTD price of $62.55.

An analyst from the firm noted, “we still see some near-term upside in MAA given upcoming catalysts such as a potential credit rating upgrade. However, we are downgrading to a Hold rating as our analysis indicates MAA is meaningfully exposed to 1) Sunbelt markets with high housing affordability, and 2) a market at risk of apartment oversupply (Dallas). In addition, rent-toincome ratios are back to historical levels.This may begin to curb rent growth in 2H 2013.”

Mid America Apartment Communities shares were mostly flat Friday morning.

The Bottom Line
Shares of Mid America Apartment Communities (MAA) have a 4.07% dividend yield, based on last night’s closing stock price of $65.07. The stock has technical support in the $62 price area. The stock is trading near the all-time highs levels of $67-$71 a share.

Mid America Apartment Communities Inc(MAA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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