W.P. Carey price target lowered to $73 from $79 at RBC Capital

RBC Capital lowered the firm’s price target on W.P. Carey to $73 from $79 but keeps an Outperform rating on the shares. The negative market reaction to the company’s office spin and asset sale plan is mostly related to a lack of desire on the part of institutional investors to inherit the office assets in a taxable spin, while retail investors also dislike the dividend cut, the analyst tells investors in a research note. The reaction represents an opportunity however as W.P. Carey is significantly better positioned without office, and the company does not need to raise additional capital for the better part of a year, the firm added.