Analyst John Kim from BMO Capital maintained a Buy rating on Essex Property (ESS – Research Report) and increased the price target to $317.00 from $315.00.
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John Kim has given his Buy rating due to a combination of factors that suggest a positive outlook for Essex Property Trust. Despite a recent slowdown in asking rents, management remains confident in meeting their lease guidance for the second quarter of 2025, highlighting the strength of the company’s fundamentals. The tech sector’s hiring trends, particularly in regions where Essex operates, provide a solid demand driver for their properties.
Additionally, while third-party data has shown some discrepancies in rent trends, Essex management believes these figures do not accurately reflect the true lease rates due to concessions and specials. This confidence in maintaining guidance, coupled with the continued demand from tech companies, supports the Buy rating. Furthermore, the target price for Essex’s stock has been increased, indicating an optimistic view of its future performance.
According to TipRanks, Kim is a 2-star analyst with an average return of 0.1% and a 45.98% success rate. Kim covers the Real Estate sector, focusing on stocks such as Vornado Realty, Easterly Government Properties, and Eastgroup Properties.
In another report released on May 23, Mizuho Securities also maintained a Buy rating on the stock with a $293.00 price target.