Centerspace upgraded to Buy at Compass Point on durability of cash flows

As previously reported, Compass Point analyst Merrill Ross upgraded Centerspace to Buy from Neutral with a price target of $65, down from $68, as the firm is changing its price target methodology and adjusting its price targets on Class B Apartment REITs. Market volatility since the FOMC Chair stressed a higher-for-longer strategy on interest rates in mid-September has “created opportunities across many real estate verticals,” argues the analyst, who is attracted to the rental housing sector in part because of the shortage of affordable housing nationwide, but also because of the durability of cash flows, even in a recession.