Essex Property Trust price target lowered to $322 from $343 at Jefferies

Jefferies lowered the firm’s price target on Essex Property Trust (ESS) to $322 from $343 and keeps a Buy 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.