Via invest4today.blogspot.com/:
Vornado Realty Trust (VNO) recently topped private equity firm the Blackstone Group's bid for Equity Office Properties Trust (EOP). There is only a finite amount of prime commercial real estate and VNO sees value in EOP. From a fundamental standpoint REITS look overvalued. Many housing and commercial REITS are trading at upwards of 18-22 times forward earnings. I don't believe Blackstone will make another bid for EOP. Instead I believe they will go after Maguire Properties (MPG).
Why should you buy MPG? & Why would a private equity firm want to buy MPG?
MPG has listed itself for sale and estimated a sale price of $50 per share
FBR added it to their "Top Picks" on 12/11/06 $47.50 price target, $51 buyout price...
MPG is now trading at $42 a share. I see it fairly valued at $42 with a target price of $48-$50.
$43.1 (02/09/07)
Agree
Disagree
