SL Green Realty upgraded to Outperform from Market Perform at BMO Capital

BMO Capital analyst John Kim upgraded SL Green Realty to Outperform from Market Perform with an unchanged price target of $30. SL is the third most-shorted U.S. real estate investment trust as concerns intensify over office demand and bank exposure to commercial real estate, coupled with the company’s s high leverage and declining earnings, the analyst tells investors in a research note. However, the firm believes the stock is oversold. SL Green’s "historically low valuation is a starting point," and catalysts are on the horizon, including asset sales and debt refinancings, that could reduce its leverage and reinforce asset values, contends BMO.