HIW - BofA upgrades SL Green and Vornado Realty as NYC risk-reward balances

BofA Securities analyst James Feldman upgrades SL Green (NYSE:SLG) and Vornado Realty Trust (NYSE:VNO) to Neutral from Underperform as he sees a more balanced risk-reward profile for the two office REITs with significant exposure to New York City. "We expect SLG to continue on its plan to recycle assets, repurchase shares, and grow the development pipeline as it seeks to modernize the portfolio," Feldman writes in a note to clients. He also expects the company to become more active in opportunistic debt and asset buyer "as clarity on market conditions improves." Lifts price target to $75 from $70. For Vornado (VNO), Feldman sees some outsized growth at the REIT's PENN District redevelopments. "Similar to SLG, VNO has a strong leasing and asset management platform that we expect to prove key competitive assets as NYS works its way through the downturn to a recovery," he writes. Increases price target to $46

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BofA upgrades SL Green and Vornado Realty as NYC risk-reward balances