Upgrades
BMO Capital Markets analyst John Kim upgraded Apartment Income REIT Corp. to "outperform" and increased the multifamily real estate investment trust's stock price target to $42 from $39.
Kim attributed the upgrade to the REIT's strong but reduced exposure in Miami and its 6.5% implied cap rate, which is higher than its peers, in a July 18 note. The analyst said the company is expected to deliver largest blended rates in the second quarter and for the rest of the year, which will be favorable for is revenue growth through 2024.
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BMO Capital Markets upgraded Camden Property Trust to "outperform" with a price target of $126. Camden Property has a solid growth profile and strong balance sheet, which will create opportunities for the REIT.
"We believe CPT will likely see better-than-expected performance over the near-term with muted rent pressure from incoming supply while its Houston and [Washington,] DC portfolios are seeing continued rent acceleration", analyst John Kim said in a July 18 note.
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Downgrades
BMO Capital Markets analyst John Kim downgraded Independence Realty Trust Inc. to "market perform" and maintained the multifamily REIT's price target at $19.
The REIT's revenue setup is unfavorable compared to its peers. It is looking to gain occupancy, but its lease growth rates are less than its peers, which will deliver a lower funds from operations per share growth in 2024. "We believe [revenue setup] will improve over time with earnings growth and opportunistic capital raising." the analyst said in a July 18 research note.
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Stifel analyst Simon Yarmak downgraded Essex Property Trust Inc. to "hold" from "buy" with a price target of $250 per unit.
The analyst attributed the downgrade to the REIT's recent outperformance and valuation. "Given our expectations of West Coast multifamily fundamentals continuing to lag its East Coast peers near-term, and the company's below average FFO growth we see less relative upside at current prices." the analyst added in a July 17 note.
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Reiterations
Evercore ISI analysts Steve Sakwa, Samir Khanal and Jay Poskitt reiterated their "outperform" ratings for Americold Realty Trust Inc., with a target price of $35 per share.
The industrial REIT's sales and shipments were impacted by cybersecurity disruptions during the quarter. "We believe the lack of new supply will support solid internal growth even during a 'recession'. " the analysts stated in July 16 note.
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