MAA upgraded to Sector Perform from Underperform at Scotiabank

Scotiabank upgraded MAA to Sector Perform from Underperform with a price target of $147, up from $133. While still cautious that many of MAA’s Sunbelt markets will have supply/demand imbalances to resolve in 2024-2025, the firm thinks the stock’s “current discounted valuation” to heavier Coastal-exposure multifamily peers is pricing in too negative a scenario on MAA’s net operating income underperformance. The analyst is taking a “wait-and-see approach” and looks for more visibility in the spring/summer leasing period.