MAA initiated with a Sell at UBS

UBS analyst Michael Goldsmith initiated coverage of MAA with a Sell rating and $150 price target. The analyst’s cautious stance reflects MAA’s premium subsector valuation that doesn’t reflect moderating rent growth and slowing migration to the Sunbelt, Goldsmith tells investors in a research note. While he expects MAA’s strong rent growth achieved in 2H22 to drive above average growth in 1H23, Goldsmith is modeling MAA’s SSNOI growth to slow faster than peers’ in 2H23 given difficult comps, increasing supply pressure, and elevated expense growth.