NexPoint Residential price target lowered to $40 from $55 at JMP Securities

JMP Securities lowered the firm’s price target on NexPoint Residential to $40 from $55 and keeps an Outperform rating on the shares. NexPoint’s core FFO was below consensus estimates for Q3, reflecting higher G&A expenses and lower NOI, and management lowered full-year guidance for core FFO and NOI, the analyst tells investors in a research note. The firm continues to like NexPoint’s niche portfolio offering affordable housing in the Sunbelt region, and thinks the 20% discount to its FTM NAV is appropriate given the company’s leverage profile.