AvalonBay downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded AvalonBay (AVB) to Market Perform from Outperform with a $220 price target AvalonBay is a “blue-chip company,” but will likely face higher costs for its developments, and weaker demand due to Department of Government Efficiency. cuts in its home market, the analyst tells investors in a research note. The firm says that while federal employees will receive severance that could mask dents in apartment fundamentals, it expects conditions to weaken during peak leasing season.