Invitation Homes downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Invitation Homes to Sector Perform from Outperform with a price target of $36, down from $37. The company’s Q3 leasing spreads show further deceleration, and its renewals show a higher level of tenant push back on rate increases, the analyst tells investors in a research note. The firm says for-sale housing could potentially become a headwind with mortgage rates moving lower, and Invitation’s high average resident income means its tenants are more likely to be able to afford a house. It continues to think 2025 consensus estimates are too high.