Allied Properties REIT (AP-UN.TO) was upgraded to Hold from Sell at Desjardins on Friday.

Analyst Lorne Kalmar lowered his price target on shares of the Canadian pure-play office real estate company to $9.50 from $12.50.

The stock declined $0.98, or 9.7%, to $9.16 on the Toronto Stock Exchange.

"Does the $560 Million equity raise provide a sufficient reset? In our view, it does, or at least is not far off, assuming everything goes according to plan," Kalmar said in a note to clients.

"However, several components of AP's action plan and outlook are beyond its control, which means there is risk that things do not materialize as contemplated." the analyst said.

"While we believe the stock still screens somewhat expensive on a P/FFO, P/NAV and implied cap rate basis, and that the path forward to recovery is far from certain, we are moving our rating to Hold from Sell following this week's sell-off."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)