Analyst John Kim from BMO Capital maintained a Hold rating on Mid-America Apartment (MAA – Research Report) and keeping the price target at $155.00.
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John Kim has given his Hold rating due to a combination of factors affecting Mid-America Apartment’s performance. The company’s fourth-quarter results for 2024 indicate challenges stemming from an oversupply in the Sunbelt markets, evidenced by an 8.0% decrease in new lease rates. Despite this, MAA managed to maintain a 4.2% increase in renewal rates. However, the guidance for the core funds from operations per share in 2025 was slightly below market expectations, which had already been adjusted downwards recently.
Reflecting on the positives, resident turnover remained low, supporting renewal rate improvements, and five markets experienced quarterly improvements. In contrast, negatives include the missed revenue and rent growth expectations in the fourth quarter and the anticipated slowdown in overall revenue growth for 2025. These factors have led John Kim to adopt a cautious stance, resulting in a Hold rating for MAA.
Kim covers the Real Estate sector, focusing on stocks such as Boston Properties, Equity Residential, and Mid-America Apartment. According to TipRanks, Kim has an average return of 0.7% and a 48.69% success rate on recommended stocks.
In another report released on January 27, Piper Sandler also assigned a Hold rating to the stock with a $170.00 price target.