As previously reported, Morgan Stanley analyst Richard Hill upgraded American Assets Trust (AAT) to Overweight from Equal Weight, as he believes the market is painting the Strip Center REITs subsector, which he notes is the worst-performing subsector year-to-date, with too broad a brush. He is cautious on REITs in general, but higher quality strips are better positioned to mitigate decelerating growth risks, Hill tells investors. He contends the market is over-penalizing American Assets' future growth potential and that the company is being mischaracterized as a strip, with only 39% of its net operating income coming from retail properties. Hill has a $37 price target on American Assets Trust.