Invitation Homes, AMH declines on Trump headline ‘likely overdone,’ says Citi

Citi believes the share price declines for Invitation Homes (INVH) and AMH (AMH) are “likely overdone” following headlines about President Trump seeking to ban institutional investors from buying single-family homes, arguing that if the pair were forced to liquidate or decided to liquidate due to an inability to scale their portfolios, this would actually be a positive catalyst for the stocks as both trade at considerable discounts to net asset value. In addition, the firm doubts the Trump administration would not allow AMH to pursue its development pipeline or Invitation to pursue homebuilder development agreements, as both add new supply to the market, the firm tells investors.