Wells Fargo downgrades UDR to Equal Weight, lowers price target to $34

As previously reported, Wells Fargo downgraded UDR to Equal Weight from Overweight with a price target of $34, down from $42.50. The firm’s revised models now forecast UDR to deliver below-average CFFO growth in 2024. Wells also cites slower pace of Other Income growth in 2024 from WiFi installations than previously expected, and Class B underperforming Class A due to trading-up. The firm recognizes UDR trades at a multiple discount to peers and will watch for better-than-expected rent and earnings growth outlooks to turn more positive.