Analyst Michael Goldsmith of UBS maintained a Buy rating on Invitation Homes, reducing the price target to $40.00.
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Michael Goldsmith has given his Buy rating due to a combination of factors that highlight Invitation Homes’ strategic position and growth potential. The company’s portfolio is well-positioned with a strategic scale that drives strong net operating income (NOI), and its operational expertise is expected to contribute significantly to earnings growth by 2028. This growth is anticipated to offset potential challenges such as debt refinancing and a moderating homebuilder pipeline.
Furthermore, the demographic trends favor Invitation Homes, with a significant number of U.S. residents entering the prime renting age, aligning with the company’s target demographic. Additionally, renting remains more cost-effective than buying in the markets where Invitation Homes operates, enhancing its appeal. The company’s focus on high-growth markets and infill locations is expected to lead to higher retention rates and stronger rental income. Overall, despite supply challenges, the strong demand trends and operational expertise suggest upside potential for the company’s shares.
Goldsmith covers the Real Estate sector, focusing on stocks such as Welltower, Extra Space Storage, and Cubesmart. According to TipRanks, Goldsmith has an average return of 0.4% and a 45.90% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $37.00 price target.