Truist analyst Michael Lewis lowered the firm’s price target on NexPoint Residential to $48 from $66 and keeps a Hold rating on the shares. The analyst sees slowing same-store net operating income growth along with $1.2B of interest rate swaps below 1.1% "burning off" over the next four years, creating a significant drag on earnings amid higher interest rates. Lewis adds that while NexPoint trades well below net asset value, he also continues to believe it deserves a lower multiple than most peers’ due to its high financial leverage.
Published first on TheFly
See today’s best-performing stocks on TipRanks >>
Read More on NXRT: