In a report released yesterday, Michael Gorman from BTIG maintained a Buy rating on American Homes, with a price target of $40.00.
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Michael Gorman has given his Buy rating due to a combination of factors that highlight American Homes’ (AMH) strong position in a disrupted housing market. Despite a slower peak leasing season, AMH demonstrated stability in its 2Q25 results, with operational leasing results remaining largely intact. The company’s lease expiration initiative is expected to improve pricing power and add stability to leasing fundamentals in the latter half of 2025 and into 2026.
Additionally, AMH’s development pipeline serves as a significant advantage, allowing the company to navigate the challenging transaction market effectively. The company has been selective in its transaction activities, optimizing its portfolio by acquiring fewer homes while disposing of others. This strategic approach, combined with a focus on reducing seasonality and maintaining strong leasing activity, positions AMH well for future growth. Furthermore, AMH shares are trading at a discount to historical averages, with a potential upside reflected in the updated price target of $40, supporting the Buy rating.
Gorman covers the Real Estate sector, focusing on stocks such as Getty Realty, American Homes, and Independence Realty. According to TipRanks, Gorman has an average return of 4.9% and a 53.67% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $40.00 price target.