American Homes: Strong Q1 Performance and Positive Leasing Trends Justify Buy Rating

BMO Capital analyst Juan C. Sanabria reiterated a Buy rating on American Homes (AMH – Research Report) today and set a price target of $40.00.

Juan C. Sanabria has given his Buy rating due to a combination of factors including American Homes’ strong first-quarter performance and positive leasing trends. The company’s earnings exceeded market expectations, with core funds from operations (FFO) and adjusted funds from operations (AFFO) both surpassing analyst forecasts. This performance indicates robust financial health and operational efficiency.
Furthermore, despite maintaining guidance below street expectations due to macroeconomic uncertainties, American Homes showed promising new lease trends and stable renewal rates. The improvement in bad debt and the continued building of occupancy rates also contribute to a positive outlook. These factors suggest that American Homes is well-positioned to capitalize on future opportunities, justifying the Buy rating.

According to TipRanks, C. Sanabria is a 2-star analyst with an average return of 0.0% and a 45.08% success rate. C. Sanabria covers the Real Estate sector, focusing on stocks such as Healthpeak Properties, CareTrust REIT, and Public Storage.

In another report released on April 17, Wells Fargo also maintained a Buy rating on the stock with a $39.00 price target.