In a report released today, Aaron Hecht from JMP Securities reiterated a Buy rating on BRT Apartments (BRT – Research Report), with a price target of $24.00.
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Aaron Hecht has given his Buy rating due to a combination of factors including the potential for BRT Apartments to benefit from a more favorable operating environment as new supply in the Sunbelt region is expected to decline significantly over the next two years. Despite the recent financial performance falling short of expectations, with core FFO below estimates, the company’s focus on maintaining occupancy and protecting margins positions it well for future growth.
Additionally, BRT’s stock is currently trading at a significant discount to its forward-looking NAV, suggesting a potential for substantial capital appreciation. The company’s strategic share repurchases at a discounted price further enhance shareholder value. Moreover, ongoing rehabilitation programs are expected to yield a strong return on investment, contributing positively to the company’s financial health. These elements combined support the Buy rating as BRT is poised to capitalize on long-term migration trends and job growth in its target markets.
According to TipRanks, Hecht is a 4-star analyst with an average return of 3.2% and a 50.79% success rate. Hecht covers the Real Estate sector, focusing on stocks such as LTC Properties, Mid-America Apartment, and Sabra Healthcare REIT.
In another report released on March 27, B.Riley Financial also maintained a Buy rating on the stock with a $21.00 price target.