BTIG analyst Michael Gorman has maintained their neutral stance on EQR stock, giving a Hold rating yesterday.
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Michael Gorman has given his Hold rating due to a combination of factors including Equity Residential’s recent financial performance and future outlook. The company reported Core FFO per share for the fourth quarter of 2024 that aligned with market expectations, although it did not meet BTIG’s own projections. Additionally, the guidance for 2025 indicates a slowdown in growth, with the midpoint of the forecasted Core FFO per share falling short of consensus expectations.
Furthermore, the single-family net operating income (SSNOI) growth is expected to decelerate in 2025 compared to the previous year. While some markets like Seattle and San Francisco have shown robust performance, others remain challenged by an increase in overall supply and weaker new lease growth. The company’s planned acquisitions and dispositions for the year appear to be only slightly dilutive, which contributes to a neutral outlook. As a result, Gorman maintains a cautious stance on EQR shares, warranting a Hold recommendation.
According to TipRanks, Gorman is a 4-star analyst with an average return of 5.0% and a 50.00% success rate. Gorman covers the Real Estate sector, focusing on stocks such as Agree Realty, Regency Centers, and Equity Residential.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $72.50 price target.