AvalonBay price target lowered to $222.50 from $225 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on AvalonBay (AVB) to $222.50 from $225 and keeps an Overweight rating on the shares. The market has attributed slowing Single-Family Rental industry rent growth to new Build to Rent supply, but the firm thinks home prices and for-sale inventory are more important drivers of SFR fundamentals, says the analyst, who contends in a note on the group that a “more of the same” housing environment means “more of the same” for SFRs.