NexPoint Residential price target lowered to $55 from $60 at Compass Point

Compass Point analyst Merrill Ross lowered the firm’s price target on NexPoint Residential to $55 from $60 and keeps a Buy rating on the shares as the firm is changing its price target methodology and adjusting its price targets on Class B Apartment REITs. Market volatility since the FOMC Chair stressed a higher-for-longer strategy on interest rates in mid-September has “created opportunities across many real estate verticals,” argues the analyst, who is attracted to the rental housing sector in part because of the shortage of affordable housing nationwide, but also because of the durability of cash flows, even in a recession.