UDR upgraded to Buy from Neutral at UBS

UBS upgraded UDR to Buy from Neutral with a price target of $44, up from $38. The firm has increasing confidence in the company’s rent growth trajectory at a “favorable valuation.” It expects strong “Coastal” rent growth at a discounted “Sunbelt” valuation. Evidence points to solid apartment demand drivers including job growth and strong absorption, the analyst tells investors in a research note. UBS thinks this indicates that the Sunbelt should be a better performer than feared through peak leasing season.