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AvalonBay upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Adam Kramer upgraded AvalonBay (AVB) to Overweight from Equal Weight with a price target of $225, down from $228. The firm says AvalonBay is the worst performing apartment real estate investment trust stock year-to-date. It cites the stock’s valuation being roughly in-line with peers and greater conviction in its “best in class” earnings growth for the upgrade. AvalonBay should see a significant ramp in development contribution, given the $2.9B of development underway, the analyst tells investors in a research note.

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