James Feldman, an analyst from Wells Fargo, maintained the Hold rating on Invitation Homes (INVH – Research Report). The associated price target remains the same with $34.00.
James Feldman has given his Hold rating due to a combination of factors including Invitation Homes’ financial performance and market conditions. The company’s FY25 guidance for core funds from operations (CFFO) is slightly below Wells Fargo’s and the Street’s expectations, indicating a modest growth outlook. Despite this, the core outlook for FY24 met expectations, suggesting stability in the company’s financials.
Feldman notes that while Invitation Homes has shown some positive indicators, such as managed home business growth and acquisition potential, its top-line growth is not as robust as its peer, American Homes 4 Rent (AMH). The market dynamics, including supply pressures from build-to-rent deliveries and existing home rentals, are expected to result in a slower recovery compared to the apartment sector. These factors contribute to the Hold rating, reflecting a cautious stance on the stock’s near-term performance.
In another report released today, KBW also maintained a Hold rating on the stock with a $35.00 price target.
INVH’s price has also changed moderately for the past six months – from $35.830 to $31.570, which is a -11.89% drop .