In a report released today, Buck Horne from Raymond James upgraded Centerspace (CSR – Research Report) to a Buy, with a price target of $66.00.
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Buck Horne has given his Buy rating due to a combination of factors including Centerspace’s compelling valuation and improving market fundamentals. The stock is trading at a significant discount compared to its multifamily peers, with a 25% NAV discount and a lower AFFO multiple, making it an attractive investment opportunity. Additionally, there is evidence of strong apartment demand and rental pricing stabilization in key markets such as Denver and Minneapolis, which contribute significantly to Centerspace’s NOI.
The company’s core markets are showing signs of strengthening, with rent growth stabilizing and even accelerating in some areas. The Midwest-focused portfolio of Centerspace is positioned to be economically resilient, benefiting from rising retention levels amid economic and mortgage rate volatility. The analyst maintains a positive outlook with a $66 price target, projecting that Centerspace will partially close the valuation gap with its peers, supported by robust fundamentals and strategic market positioning.
In another report released on April 17, RBC Capital also maintained a Buy rating on the stock with a $71.00 price target.