Analyst John Kim of BMO Capital maintained a Buy rating on Equity Residential, retaining the price target of $75.00.
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John Kim has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Equity Residential. Despite the deceleration in new lease growth across most markets, except for San Francisco, and a reduction in full-year revenue guidance, the company has maintained its core funds from operations guidance, which is a positive indicator of financial stability.
Additionally, San Francisco showed significant revenue acceleration, and the company has effectively managed turnover, which continues to decline. Moreover, Equity Residential has been proactive in deploying $99.1 million in buybacks, and there has been a reduction in bad debt. These strategic moves and financial metrics suggest that while there are headwinds, the company is positioned to navigate them effectively, justifying the Buy rating.
In another report released on October 15, RBC Capital also maintained a Buy rating on the stock with a $72.00 price target.