AvalonBay downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded AvalonBay (AVB) to Equal Weight from Overweight with a price target of $203, down from $208. The firm’s new analysis has cities outperforming suburbs for the apartments, which it calls a “big shift.” With deliveries set to fall 70% from peak, concession usage should fall, firming occupancy, the analyst tells investors in a research note. It sees AvalonBay’s growth lagging in 2026 and 2027.