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American Homes: Resilient Performance and Positive Outlook Justify Buy Rating Despite Future Challenges

American Homes: Resilient Performance and Positive Outlook Justify Buy Rating Despite Future Challenges

American Homes (AMHResearch Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Juan C. Sanabria from BMO Capital maintained a Buy rating on the stock and has a $40.00 price target.

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Juan C. Sanabria has given his Buy rating due to a combination of factors surrounding American Homes’s recent financial performance and future outlook. Despite a slight miss in the 2025 FFO guidance due to planned refinancing and related dispositions, the company’s 4Q24 earnings were strong with a solid increase in same-store net operating income. The earnings demonstrated resilience amidst the generally soft housing market, indicating good positioning for the company.
Sanabria also notes that while some metrics like the 2025 same-store NOI growth were slightly below expectations, moderating expenses and higher occupancy rates provide a counterbalance. Additionally, the company’s core funds from operations aligned with market expectations, highlighting financial stability. These factors contribute to a favorable outlook for American Homes, justifying the Buy rating despite the challenges anticipated in the upcoming year.

According to TipRanks, C. Sanabria is a 2-star analyst with an average return of -0.3% and a 44.26% success rate. C. Sanabria covers the Real Estate sector, focusing on stocks such as Brixmor Property, Healthpeak Properties, and CareTrust REIT.

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