UDR upgraded to Overweight on conservative outlook at Wells Fargo

Wells Fargo upgraded UDR to Overweight from Equal Weight with a price target of $39, up from $34. The analyst says UDR offers the most conservative guidance in multifamily and only 25% net operating income exposure to Sunbelt markets despite trading more in line with Sunbelt peers than Coastal. The firm believes the company’s guidance will prove conservative and sees catalysts in better than expected blended rent growth as well as positive updates on the potential refinancing of the Philly DCP asset in Q2.