AvalonBay Communities Started as an “Outperform” at FBR Capital (AVB)

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Apartment-based REIT AvalonBay Communities, Inc. ( AVB ) on Friday saw its coverage initiated with an "Outperform" rating by analysts at FBR Capital Markets.

The firm also set a $128 price target on AVB, which implies a 16% upside to the stock's Thursday closing price of $110.48.

An FBR analyst commented, "The stock is liquid, with an average (REIT) beta, and nearly always trades with a sizable premium to net asset value ( NAV ). Despite the hefty premium to NAV with which the stock currently trades, we believe that AVB is poised for above-average performance as the company accelerates accretive external growth; now is likely the time for investors to 'prepay' for development futures."

AvalonBay Communities shares were mostly flat in premarket trading Friday.

The Bottom Line
We recently began recommending shares of AvalonBay Communities ( AVB ) on Nov.30, 2010, when the stock was trading at $110.12. The company has a 3.23% dividend yield, based on last night's closing stock price of $110.48.

AvalonBay Communities, Inc. ( AVB ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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Referenced Stocks: AVB , NAV

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