Positive Lease Growth and Stable Occupancy Support Buy Rating for American Homes 4 Rent

Morgan Stanley analyst Adam Kramer maintained a Buy rating on American Homes (AMH – Research Report) yesterday and set a price target of $40.50.

Adam Kramer’s rating is based on several positive indicators for American Homes 4 Rent (AMH). One of the key factors is the acceleration in new lease growth, which increased from 3.9% in April to 4.3% in May. This improvement in lease growth suggests a strengthening demand for AMH’s properties. Additionally, the renewal and blended lease growth remained stable at 4.4% and 4.3%, respectively, indicating consistent performance in these areas.
Moreover, the occupancy rate held steady at a robust 96.3% in both April and May, reflecting strong tenant retention. Although there was a likely increase in turnover in May, this is attributed to typical seasonal trends and does not appear to be a cause for concern. Despite a slight year-over-year decrease in lease growth and occupancy, the overall performance and stability of AMH’s leasing metrics support the Buy rating. Kramer’s analysis suggests confidence in AMH’s ability to maintain its market position and deliver value to investors.

In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $45.00 price target.

AMH’s price has also changed slightly for the past six months – from $38.290 to $37.500, which is a -2.06% drop .