BMO Capital analyst Michael Markidis maintained a Buy rating on Minto Apartment Real Estate Investment Trust (MI.UN – Research Report) today and set a price target of C$15.00.
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Michael Markidis has given his Buy rating due to a combination of factors influencing Minto Apartment Real Estate Investment Trust’s current and future performance. The Trust has demonstrated solid top-line growth, particularly in unfurnished suites, despite some challenges in furnished suite and commercial lease revenue. This growth is supported by a consistent leasing spread, indicating strong demand, albeit with renters showing increased price sensitivity.
Additionally, Minto’s strategic capital allocation, including a significant investment in the normal course issuer bid (NCIB), positions it well for future reinvestment opportunities. The repayment of the construction loan related to The Hyland could further enhance its capital for reinvestment. While the stock has underperformed year-to-date, its valuation appears attractive compared to peers, suggesting potential for long-term gains. Despite the current lack of immediate catalysts, Markidis believes that patient investors will likely see rewards as the Trust continues to focus on capital allocation in a constrained environment.
Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MI.UN in relation to earlier this year.