Citi downgrades Kite Realty, upgrades Acadia Realty

Citi downgraded Kite Realty Group (NYSE:KRG) on fewer near-term catalysts, and upgraded Acadia Realty Trust (NYSE:AKR), citing attractive valuation, improving Street retail fundamentals, and a lower levered balance sheet.

"We are downgrading KRG to Neutral from Buy, given fewer near-term company-specific catalysts make relative outperformance unlikely in the near term despite the shares trading at a discounted valuation and discount to NAV," said analysts Craig Mailman and Nick Joseph.

The price target was reduced to $24.00 from $28.00.

Meanwhile, Acadia Realty Trust was upgraded even as "New York City exposure has been an overhang given the proposed policy plans of the anticipated new mayoral administration."

"We believe the fundamental outlook for NYC retail remains positive," said the analysts in a research note.

AKR stock was upgraded to Buy from Neutral, and the price target increased to $23 from $20. Shares were +3.69% Friday pre-market to $20.50 .

The rating on AKR aligns with the average Seeking Alpha authors and Wall Street analysts rating of Buy. The Quant Rating system sees the stock as Sell. Meanwhile, KRG gets a Hold rating from SA contributors and Quant, but a Buy rating from the sell-side analysts.