Jefferies analyst Linda Tsai lowered the firm’s price target on AvalonBay (AVB) to $240 from $247 and keeps a Hold rating on the shares as part of a 2025 outlook for residential real estate investment trusts. The firm continues to prefer Coastal over Sunbelt REITs, citing less supply pressures, leading to higher new rate growth in 2025. However, following a year of outperformance, the sub-sector needs a catalyst for multiples to inflect higher, the analyst tells investors in a research note. Jefferies is cautious on Sunbelt multifamily in 2025, expecting supply deliveries to weigh on new lease rate growth throughout the year.
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Read More on AVB:
- AvalonBay upgraded to Overweight from Neutral at JPMorgan
- Barclays starts AvalonBay at Equal Weight, says good news seems priced in
- AvalonBay initiated with an Equal Weight at Barclays
- AvalonBay price target raised to $245 from $235 at Argus
- AvalonBay price target lowered to $241 from $244 at Scotiabank