Invitation Homes downgraded to Hold from Buy at Jefferies

Jefferies downgraded Invitation Homes (INVH) to Hold from Buy with a price target of $33, down from $39 as part of a 2025 outlook for residential real estate investment trusts. Continued supply will likely slow the company’s sales growth, the analyst tells investors in a research note. The firm says Invitation is facing competition from build-to-rent supply, which pushed new lease rate growth into negative territory in October. While management points to slowing deliveries in 2025 as a reason for optimism, Jefferies is skeptical that concessions will burn off quickly. Further, if interest rates remain elevated, the incremental benefit to Invitation seeing higher demand from renters is nominal, as rates are already high, contends the firm.