NexPoint Residential price target lowered to $27 from $30 at Truist

Truist analyst Michael Lewis lowered the firm’s price target on NexPoint Residential (NXRT) to $27 from $30 and keeps a Hold rating on the shares. The company’s real estate appears deeply undervalued at a 6.7% implied cap rate, but fundamentals may be pressured by weak U.S. employment trends even as the pace of new supply slows, the analyst tells investors in a research note. The firm adds that the REIT’s dividend hike was surprising as it believes the company may be better served by cutting it and reducing financial leverage.