Positive Trends and Strong Market Performance Justify Buy Rating for Equity Residential

BMO Capital analyst John Kim has maintained their bullish stance on EQR stock, giving a Buy rating on April 17.

John Kim has given his Buy rating due to a combination of factors that highlight positive trends for Equity Residential. The company reported better-than-expected results for the first quarter of 2025 in terms of normalized funds from operations per share, and it maintained its full-year guidance. This performance was supported by an improvement in new lease rates, consistent with market trends, and an anticipated acceleration in blended lease growth in the second quarter of 2025, indicating that seasonal trends are progressing well.
Additionally, most of Equity Residential’s primary markets experienced positive momentum in new lease rates, with significant sequential improvements in San Francisco and Seattle. The company also saw a reduction in bad debt and maintained low turnover rates, which are favorable indicators of operational efficiency. However, some challenges were noted, such as maintained guidance below market expectations and decelerating blended rates in certain expansion markets and Denver. Despite these negatives, the overall positive outlook and strong market performance underpin the Buy rating.

In another report released on April 17, RBC Capital also maintained a Buy rating on the stock with a $75.00 price target.