Apartment Income REIT upgraded to Buy at Truist amid apartment REIT shake-up

As previously reported, Truist analyst Michael Lewis upgraded Apartment Income REIT to Buy from Hold with a price target of $44, up from $41, as the firm updates apartment REIT models following Q2 results. Within the firm’s 10-company apartment REIT coverage universe, Apartment Income trades at the second-lowest P/2023 FFO and highest dividend yield and the firm does not think the magnitude of this valuation discount is warranted, the analyst tells investors. Truist expects the gap to close as Apartment Income should deliver strong same-store and earnings growth in the second half and 2024, the analyst added.