BMO Capital analyst John Kim upgraded the rating on Independence Realty to a Buy today, setting a price target of $22.00.
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John Kim has given his Buy rating due to a combination of factors tied to valuation, growth prospects, and market positioning. He believes Independence Realty is well placed to benefit from ongoing migration into the Sunbelt, where the company’s properties offer relatively affordable rents compared with the broader multifamily REIT universe. The stock is trading at a discount on a 2026 AFFO multiple basis versus peers, which he views as an appealing entry point, especially after the company’s slight underperformance in 2025. In addition, he sees downside support from the potential for further M&A activity in the sector, which could help establish a higher floor for the share price.
John Kim also highlights favorable demographic and supply dynamics in Independence Realty’s core markets. Population growth in the company’s top regions is projected to outpace national and coastal averages, underpinned by migration trends toward warmer southern states such as Texas, Florida, and North Carolina. These areas continue to rank highly on migration indicators, suggesting sustained demand for rental housing. Combined with a more constructive new‑supply backdrop, these factors support stronger operating fundamentals for Independence Realty, reinforcing his view that the shares warrant an Outperform/Buy rating.
Kim covers the Real Estate sector, focusing on stocks such as Alexandria Equities, Kilroy Realty, and BXP. According to TipRanks, Kim has an average return of -1.6% and a 43.84% success rate on recommended stocks.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $20.00 price target.