Armada Hoffler initiated with a Sector Perform at Scotiabank

Scotiabank analyst Viktor Fediv initiated coverage of Armada Hoffler (AHH) with a Sector Perform rating and $11 price target The firm believes there is “underappreciated” asset value within the company’s largely mixed-use portfolio, but estimates a negative funds from operations growth story in the coming years as Armada reduces exposure to fee-based earnings streams in the construction management and real estate financing segments. As such, the analyst does not think there is meaningful valuation upside for the stock today.