BTIG analyst Michael Gorman maintained a Buy rating on Mid-America Apartment today and set a price target of $160.00.
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Michael Gorman has given his Buy rating due to a combination of factors influencing Mid-America Apartment’s current and future performance. Despite the challenges posed by a record supply shock and slower-than-expected momentum in operating results, MAA has managed to perform in line with its peers, maintaining a stable position within the sector. The company’s strong balance sheet and attractive cost of debt capital are notable strengths, and its selective entry into the acquisitions market suggests a strategic approach to growth.
Furthermore, while there are headwinds such as expense growth and interest expense pressures, MAA’s valuation presents an opportunity. The stock trades at a discount to the REIT sector and its NAV estimate, indicating potential for valuation improvement as market fundamentals strengthen. The expectation is that as the supply-demand balance normalizes, MAA will be well-positioned for growth, which supports the Buy rating despite current challenges.
According to TipRanks, Gorman is a 4-star analyst with an average return of 4.3% and a 49.12% success rate. Gorman covers the Real Estate sector, focusing on stocks such as Healthcare Realty Trust, Regency Centers, and Centerspace.
In another report released on December 2, Colliers Securities also maintained a Buy rating on the stock with a $150.00 price target.