InterRent stock rating cut, PT raised to C$14 by Raymond James

On Tuesday, Raymond (NSE:RYMD) James analyst Brad Surges adjusted the rating for InterRent REIT (TSX:IIP_u) (IIP-U:CN) to Market Perform, a change from the previous Outperform rating. Accompanying the downgrade, the price target was increased to C$14.00, up from C$13.25. The new price target is slightly below Raymond James’s estimated net asset value (NAV) per unit of C$14.25 but represents a 3% premium over the current cash takeover offer from Carriage Hill.

The revision reflects the analyst’s perspective on the recent takeover developments. Surges mentioned that while the new price target is modestly above the existing offer by Carriage Hill, there is a possibility that the bidder might have to increase its offer to win unitholder approval. However, the right of Carriage Hill to match any competing bids could discourage other potential bidders from entering the fray.

The analyst’s comments suggest that the current market conditions and the dynamics of the takeover bid have been influential in the decision to adjust InterRent’s stock rating and price target. The change indicates a neutral outlook on the stock’s performance, aligning the rating with the anticipated outcomes of the takeover process.

InterRent’s shareholders are now faced with evaluating the revised price target in the context of the ongoing acquisition offer. With the analyst’s expectation of a potentially higher bid from Carriage Hill, unitholders might anticipate further developments before making a decision.

The updated price target of C$14.00 by Raymond James serves as a new benchmark for InterRent REIT’s stock value, reflecting both the analyst’s assessment of the real estate investment trust’s intrinsic value and the impact of the external takeover bid.

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