Analyst Juan C. Sanabria of BMO Capital maintained a Hold rating on Invitation Homes (INVH – Research Report), with a price target of $36.00.
Juan C. Sanabria has given his Hold rating due to a combination of factors impacting Invitation Homes. The company’s fourth-quarter earnings and same-store results were aligned with expectations, but new lease trends showed a decline towards the end of the year. Additionally, the earnings guidance for 2025 is slightly below expectations, with same-store revenue and net operating income projections falling short compared to peers like American Homes 4 Rent (AMH).
While occupancy rates are anticipated to stabilize at a lower level, there is an expectation of improvement in bad debt. The single-family rental sector is experiencing longer lengths of stay due to favorable affordability compared to home purchases, yet the pricing power has not met expectations. Sanabria is also looking for updates on how the supply of homes is affecting the market, which adds to the cautious outlook reflected in the Hold rating.