Compass Point upgrades Easterly to Buy, says shares ‘oversold’

As previously reported, Compass Point upgraded Easterly Government Properties to Buy from Neutral with a $17 price target, as the firm contends that shares are "oversold for reasons that have little to do with the fundamentals of Easterly’s portfolio or its capacity for growth." Easterly’s cash flows are "97% implicitly guaranteed by the full faith and credit of the U.S. Government," its weighted average lease term is over 10 years, the portfolio is 99% occupied and the firm thinks the dividends are sustainable. While the firm adds that it has not included acquisition activity in its model, it believes that the balance sheet can support growth.