Analyst Tom Callaghan of BMO Capital maintained a Buy rating on H&R Real Estate ate Staple, boosting the price target to C$13.50.
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Tom Callaghan has given his Buy rating due to a combination of factors that suggest potential growth and value in H&R Real Estate’s portfolio. The formation of a Special Committee to explore strategic alternatives in response to unsolicited interest indicates a proactive approach to maximizing shareholder value. This move has attracted multiple interested parties, which introduces competitive tension and could lead to favorable outcomes for the company.
Furthermore, the Lantower residential platform, with its strong presence in sunbelt and gateway cities, is considered a highly attractive asset within H&R’s portfolio. The company’s industrial assets in Canada also present significant potential for growth. Additionally, the current valuation of H&R provides a wide margin of safety and potential upside, as it trades at a significant discount to its net asset value. These elements combined support the Buy rating, reflecting optimism about the company’s future prospects.