The Globe and Mail reports in its Wednesday edition that Raymond James analyst Ken Avalos has reduced Killam Apartment Real Estate Investment Trust to "outperform" from "strong buy." The Globe's David Leeder writes in the Eye On Equities column that Mr. Avalos, however, hiked his share target by 50 cents to $12.50. Analysts on average target the shares at $12.17. Mr. Avalos says his downgrade was "based solely on [Killam's] strong run recently and lower upside to target in the short term. The REIT continues to execute well within its core markets and portfolio performance has been sound. However, with a strong 13-per-cent year-to-date return and smaller NAV [net asset value] discount, we think [the lower rating is] prudent." He says: "Canadian REITs as an index rode falling rates, improving sentiment around the oil situation and multiyear low valuations to deliver a strong 11-per-cent return for 1Q16, outpacing the broader Canadian equity markets and comparing favourably to the 6 per cent delivered by U.S. REITs. While returns were positive over all, there was sizable volatility across some names that were heavily shorted. ... Several names [had] double-digit up days as shorts covered and buyers returned."