The Globe and Mail reports in its Tuesday, May 16, edition that Desjardins Securities analyst Kyle Stanley has European Residential REIT to "hold" from "buy." The Globe's David Leeder write that Mr. Stanley knocked his unit target back by 75 cents to $3.75. Analysts on average target the shares at $4.15. Mr. Stanley says in a note: "While European Residential REIT continues to deliver robust operating results, higher interest costs have eliminated near-term earnings growth. Moreover, its larger and more liquid European peers trade at a materially wider valuation discount (more than 60-per-cent NAV discount vs European Residential's 32-per-cent discount). However, European Residential's management team appears highly motivated to maximize unitholder value, and near-term progress on this goal presents a risk to our call." Mr. Stanley thinks the only way for the REIT to take advantage of "the currently trapped value upside" is through M&A activity, noting the commentary from its quarterly conference call "suggests management is motivated to maximize unitholder value and is evaluating all options." Mr. Stanley says outside of M&A, he see "limited ability" for European Residential "to capture embedded value."