Analyst John Kim of BMO Capital maintained a Buy rating on Essex Property (ESS – Research Report), retaining the price target of $315.00.
John Kim has given his Buy rating due to a combination of factors that highlight Essex Property’s strong performance and strategic initiatives. The company reported a first-quarter beat on core funds from operations per share, surpassing both market expectations and BMO’s estimates. This positive performance is complemented by Essex’s successful execution of its acquisition pipeline, including a significant investment in Northern California and the commencement of a major development project in South San Francisco.
Additionally, Essex has demonstrated robust revenue growth in key regions such as Los Angeles and Ventura County, driven by increased demand, possibly due to wildfire-related factors. Despite maintaining its full-year guidance and a slightly conservative outlook for the second quarter, the company’s sector-leading guidance range and strategic investments position it well for future growth. These elements collectively underpin John Kim’s confidence in Essex Property’s stock, justifying the Buy rating.
In another report released on April 22, Piper Sandler also reiterated a Buy rating on the stock with a $370.00 price target.