Multifamily REITs Set For Revenue Boost As Supply Pressures Ease, Says Goldman Sachs
Portfolio Pulse from Lekha Gupta
Goldman Sachs analyst Julien Blouin initiated coverage on several multifamily and single-family rental REITs, highlighting potential revenue growth due to easing supply pressures. Invitation Homes Inc. (INVH) and American Homes 4 Rent (AMH) received Buy ratings, while Camden Property Trust (CPT), Equity Residential (EQR), and Essex Property Trust, Inc. (ESS) were rated Neutral. UDR, Inc. (UDR) was given a Sell rating. The analyst expects strong demand and demographic trends to drive revenue growth, particularly for AMH and INVH.

September 04, 2024 | 6:54 pm
News sentiment analysis
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NEGATIVE IMPACT
UDR, Inc. received a Sell rating from Goldman Sachs with a price target of $42. Despite solid rent growth in suburban areas, urban outmigration poses challenges.
The Sell rating and challenges from urban outmigration suggest a likely decrease in UDR's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Camden Property Trust (CPT) received a Neutral rating from Goldman Sachs with a price target of $139. The rating reflects a balanced outlook with no significant short-term price movement expected.
The Neutral rating indicates a balanced view, suggesting no significant short-term price movement for CPT.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Equity Residential (EQR) received a Neutral rating from Goldman Sachs with a price target of $81. Expected to face supply challenges in urban submarkets.
The Neutral rating and anticipated supply challenges suggest a stable outlook with no significant short-term price changes for EQR.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Essex Property Trust, Inc. (ESS) received a Neutral rating from Goldman Sachs with a price target of $318. Strong rent growth expected in suburban markets.
The Neutral rating and expected strong rent growth in suburban markets suggest a stable outlook for ESS with no significant short-term price changes.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
American Homes 4 Rent (AMH) received a Buy rating from Goldman Sachs with a price target of $48. Expected to see strong revenue growth due to demographic trends and easing supply pressures.
The Buy rating and expected strong revenue growth due to favorable market conditions suggest a positive impact on AMH's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Invitation Homes Inc. (INVH) received a Buy rating from Goldman Sachs with a price target of $46. Strong demand and easing supply pressures are expected to drive revenue growth.
The Buy rating and positive outlook on revenue growth due to easing supply pressures suggest a likely increase in INVH's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90