AvalonBay price target lowered to $186 from $228 at Truist

Truist analyst Michael Lewis lowered the firm’s price target on AvalonBay to $186 from $228 to reflect higher operating expenses and interest rates. The analyst also keeps a Hold rating on the shares, noting that the stock has priced in recovering fundamentals but trades at a premium valuation without an above-average growth outlook. Lewis further notes that markets such as NY and L.A. have elevated unemployment and continue to face outmigration to the South, while the large development pipeline faces rising costs.