Mizuho analyst Haendel St. Juste downgraded AvalonBay to Neutral from Buy with a price target of $170, down from $220. The analyst says "stubborn" inflationary and cost headwinds, along with a deceleration in renewal rates, should continue to pressure AvalonBay’s development yields. In addition, rising cap rates compresses the company’s earnings, which along with incremental bad debt risk "suggests a more limited relative opportunity," St. Juste tells investors in a research note.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly
See the top stocks recommended by analysts >>
Read More on AVB:
- As Home Sales Plummet, These Apartment Stocks Could Make Money
- AvalonBay price target lowered to $190, transferred at Hold at Jefferies
- AvalonBay price target lowered to $189 from $205 at Piper Sandler
- AvalonBay price target lowered to $217 from $220 at Evercore ISI
- Morgan Stanley Says These 3 Reliable Dividend Stocks Should Be on Your Buy List (Especially Right Now)