Equity Residential downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo downgraded Equity Residential to Equal Weight from Overweight with a price target of $77, up from $69. The firm changed ratings within the multifamily real estate investment trust sector to reflect its preference for accelerating seas growth in 2025. Wells expects better fundamentals for coastal again in 2025. The analyst forecasts below-REIT sector average growth for multifamily and says most multifamily REITs screen at the low end of its “Growth at a Reasonable Price” analysis. However, accelerating transaction activity year-to-date provides an increasing level of price discovery highlighting discounted implied cap rates for many of the REITs with the slowest 2025 growth, the analyst tells investors in a research note. The firm also believes headline risk lingers with the RealPage lawsuit and election season focus on housing.