Multifamily REITs Face Pricing Challenges Amid Competitive Pressures: Analyst Adjusts Outlook For CPT And MAA
Portfolio Pulse from Lekha Gupta
Wedbush analyst Richard Anderson has revised the price targets for Mid-America Apartment Communities Inc (MAA) and Camden Property Trust (CPT), citing competitive pressures and pricing challenges in the multifamily REIT sector. The price target for CPT was reduced to $98 from $105, maintaining an Outperform rating, while MAA's target was lowered to $128 from $137 with a Neutral rating. Anderson notes that concessions by private owners could affect REIT-owned community pricing. Despite supply concerns, demand from college-educated residents could provide some offset. Anderson suggests capital may flow into Sunbelt multifamily properties, viewing the supply issue as temporary. FY24 estimates for same-store NOI growth were cut to slightly negative, and FY24 AFFO estimates were also reduced for both CPT and MAA.
December 04, 2023 | 6:23 pm
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NEGATIVE IMPACT
Wedbush analyst Richard Anderson lowered the price target for Camden Property Trust to $98 from $105 but maintained an Outperform rating. Competitive pressures and pricing challenges in the multifamily REIT sector are expected to impact performance.
The reduction in price target by a notable analyst due to competitive pressures and pricing challenges suggests a negative short-term impact on CPT's stock price. The maintained Outperform rating may mitigate some negative sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Mid-America Apartment Communities Inc's price target was cut by Wedbush analyst Richard Anderson to $128 from $137, with a reiterated Neutral rating. The company faces similar competitive pressures as CPT in the multifamily REIT sector.
The lowered price target for MAA indicates a bearish outlook due to competitive pressures, which could lead to a negative short-term impact on the stock price. The Neutral rating indicates a cautious stance from the analyst.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90