BMO Capital analyst John Kim has maintained their bullish stance on ESS stock, giving a Buy rating on January 21.
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John Kim has given his Buy rating due to a combination of factors that position Essex Property well within the multifamily sector. The company has demonstrated a conservative approach in its financial outlook, which has historically resulted in outperforming initial guidance. For instance, their 2024 Core Funds From Operations (FFOps) surpassed original expectations. Looking ahead, Essex Property’s 2025 guidance includes an anticipated acceleration in blended lease growth, projected to be among the highest in the multifamily sector at 3%.
Additionally, occupancy rates in key markets like Los Angeles have stabilized, with potential positive impacts from regional demand shifts due to unforeseen events like the wildfires. These factors contribute to a favorable outlook for the company’s performance, underscoring John Kim’s confidence in the stock’s potential, despite the initial 2025 Core FFOps guidance being slightly below consensus expectations.
In another report released on January 21, Deutsche Bank also upgraded the stock to a Buy with a $310.00 price target.