The Globe and Mail reports in its Thursday, Nov. 9, edition that Scotia Capital analyst Himanshu Gupta has upgraded European Residential REIT to "sector outperform" from "sector perform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Gupta targets European Residential units at $3.50, which is three cents higher than the consensus. He issued his upgrade following the release of the REIT's in-line third quarter financial results. The Globe says Mr. Gupta believes his rationale for a previous downgrade has "now fully played out." He says in a note: "In our downgrade note earlier this year, we mentioned that we expect negative FFOPU growth in 2023 and see deeply discounted valuation for European residential names. Now, as we end the year, we see positive (albeit modest) FFOPU [funds from operations per unit] growth in 2024 and improved valuation for European peers." The Globe says Mr. Gupta believes the REIT's "bad news is actually the good news." Mr. Gupta says European Residential's valuation "now makes sense both on absolute and relative basis." The Globe reported on May 12 that Mr. Gupta cut European Residential to "sector perform" from "sector outperform." It was then worth $3.02.