NexPoint Residential price target lowered to $34 from $35 at Truist

Truist analyst Michael Lewis lowered the firm’s price target on NexPoint Residential (NXRT) to $34 from $35 and keeps a Hold rating on the shares. The company’s portfolio is in the same region as its Buy-rated Sunbelt-focused REITs – Camden Property (CPT) and Mid-America Apartment (MAA), but the firm views NexPoint “very differently” because its high financial leverage means it cannot convert net operating income into cashflow as efficiently, the analyst tells investors in a research note. The REITs earnings are expected to decline in the coming years as $1.2B as $1.2B of interest rate swaps mature through Q3 of 2026, Truist adds.