UDR upgraded to Outperform from Market Perform at BMO Capital

BMO Capital upgraded UDR to Outperform from Market Perform with a price target of $45, up from $39. The firm continues to favor coastal multifamily real estate investment trusts heading into Q2 earnings. BMO’s recent discussion with private owner Carmel Partners reinforced its view that coastal fundamentals have continued to be strong, in particular Washington, D.C., UDR’s largest market. In addition, the Bay Area and Seattle, among UDR’s top 10 markets, will likely see accelerating rent growth over the next 12 months, the analyst tells investors in a research note. The firm believes UDR provides the best value among primarily coastal multifamily REITs, while a 2024 guidance raise is likely.