AvalonBay upgraded to Overweight from Equal Weight at Barclays

Barclays upgraded AvalonBay to Overweight from Equal Weight with a price target of $204, up from $194. Due to high supply growth and inflationary cost pressures, the earnings growth outlook for apartment real estate investment trusts is “generally soft,” the analyst tells investors in a research note. Given this, the firm is cautious on the space relative to other residential subsectors. To the extent investors want exposure into any potential upside from peak leasing season, it thinks AvalonBay is a good option, especially after the stock’s decline from its December high.