AvalonBay upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded AvalonBay to Overweight from Equal Weight with a price target of $191.50, up from $175. Apartment real estate investment trusts continue to trade at larger than historical discounts to the broader REIT group, which is explainable given record levels of new supply drove negative new lease growth in Q4 and January, the analyst tells investors in a research note. The firm upgrades AvalonBay on the company’s “conservative” revenue guidance and job growth forecast that is below peers. It sees less risk from new supply and the best earnings growth in the group through 2026.