The Globe and Mail reports in its Tuesday edition that following Friday's news of Tricon Residential's $3.5-billion friendly takeover offer from Blackstone, Citi analyst Eric Wolfe moved his recommendation for Tricon to "neutral" from "buy" with an $11.25 share target to match the proposed deal price, up from $10.50 (all figures U.S.). The Globe's David Leeder writes that analysts on average target the shares at $10.41. Mr. Wolfe says in a note: "We view Blackstone's announced privatization of Tricon at $11.25 (approximately 30-per-cent premium to Thursday's close) as a fair outcome for shareholders, especially given continued volatility in the capital markets and elevated interest rates. Due to Tricon's higher leverage vs. public REITs, the NAV is sensitive to the assumed cap rate (we calculate 5.2 per cent at deal price vs. management's estimate of 5.5 per cent before adjusting for the portfolio's loss-to-lease). It's possible that another investor could place a higher value on the portfolio, and the break fee is relatively small in the near-term (approximately 20 cents), but we believe a topping bid is unlikely given Tricon's complexity and size (approximately 6.4 billion GAV). We downgrade shares to 'neutral.'"