NexPoint Residential price target lowered to $55 from $70 at JMP Securities

JMP Securities analyst Aaron Hecht lowered the firm’s price target on NexPoint Residential to $55 from $70 and keeps an Outperform rating on the shares. The stock’s outperformance following the core FFO beat reflects guidance being incrementally lowered on a combination of operating difficulties and outsized development deliveries, the analyst tells investors in a research note. While the NexPoint portfolio represents an attractive niche affordable housing play, it is critical that management executes on dispositions this year or risk questions with regard to the true value of the real estate, the firm contends.