Armada Hoffler initiated with a Buy at Jefferies

Jefferies initiated coverage of Armada Hoffler (AHH) with a Buy rating and $8 price target The company’s Q1 dividend cut caught the market by surprise, contributing to the shares dropping 32% year-to-date, the analyst tells investors in a research note. The firm thinks to selloff is overdone. The pullback overlooks Armada’s “solid fundamentals and a well-covered, still attractive” dividend, the firm contends. It expects the company’s near-term earnings to clear low expectations, and that the stock will re-rate more in line with its historical averages.