American Homes 4 Rent Coverage Initiated at Morgan Stanley (AMH)
Investment analysts at Morgan Stanley assumed coverage on shares of American Homes 4 Rent (NYSE:AMH) in a note issued to investors on Monday, Analyst Ratings.Net reports. The firm set an “equal weight” rating and a $18.00 price target on the stock. Morgan Stanley’s target price suggests a potential upside of 12.36% from the stock’s previous close.
The analysts wrote, “We believe in the single family rental (SFR) investment thesis and view AMH as a high quality operator that deserves a valuation premium. However, this premium is already appropriately reflected in the stock price, and peers like ARPI offer more favorable risk-reward. AMH is buying homes >25% below prior peaks and replacement cost. We expect 6% average annual HPA over the next five years in our base case. Net yields are in the mid-6%’s (pre cap-ex). To be clear, though, this is not a yield story in the near-term as cash flow will struggle to keep up with the pace of vacant home acquisitions. AMH is internally managed (we prefer internal over external) and enjoys a scale advantage over peers. Portfolio quality should also attract high quality tenants.”
American Homes 4 Rent (NYSE:AMH) traded down 0.59% during mid-day trading on Monday, hitting $15.9247. The stock had a trading volume of 224,645 shares. American Homes 4 Rent has a one year low of $15.50 and a one year high of $16.74. The stock’s 50-day moving average is $15.95 and its 200-day moving average is $15.95. The company’s market cap is $2.848 billion.
AMH has been the subject of a number of other recent research reports. Analysts at FBR & Co. initiated coverage on shares of American Homes 4 Rent in a research note to investors on Monday. They set an “outperform” rating on the stock. Separately, analysts at Bank of America Corp. initiated coverage on shares of American Homes 4 Rent in a research note to investors on Monday. They set a “neutral” rating and a $18.00 price target on the stock. Finally, analysts at Credit Suisse initiated coverage on shares of American Homes 4 Rent in a research note to investors on Monday. They set a “neutral” rating and a $18.00 price target on the stock.
Five research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $18.17.
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