UDR Receives Positive Rating Boost as Truist Securities Analyst Raises Price Target

Truist Securities analyst Michael Lewis recently raised their price target on Udr (NYSE: UDR) by 4.8% from $42 to $44 on June 24, 2024. Despite the increase, the analyst maintained their Strong Buy rating on the stock. This upward revision in the price target was part of a broader Real Estate (REIT Residential) sector review conducted by Truist Securities. Lewis explained that the update to their model for companies in the sector was based on factors such as current interest rates, cap rates, and rent spread trends.

Lewis emphasized that the adjustment to the model was driven by stronger-than-expected job growth in the first part of the year, which had a positive impact on markets across various regions. However, the analyst also suggested some near-term caution when it comes to apartment fundamentals, indicating that a measure of conservatism might be warranted.

In addition to the rating update for Udr, Lewis also made several changes to price targets for other companies in their portfolio. For Avalonbay Communities Inc, the price target was raised by 2.9% from $207 to $213, while the Hold rating was maintained. Essex Property Trust Inc saw a more substantial increase of 10.6% in its price target, going from $255 to $282, also with a Hold rating retained. Nexpoint Residential Trust Inc had its price target raised by 8.8% from $34 to $37, with a Hold rating unchanged. Veris Residential Inc, on the other hand, experienced a decrease of -6.7% in its price target, dropping from $15 to $14, with the Hold rating maintained. Finally, Camden Property Trust had its price target raised by 7% from $114 to $122, and the Strong Buy rating was also retained.

It is worth noting that 100% of the top-rated analysts currently recommend UDR as either a Strong Buy or Buy, with no analysts considering it a Hold or recommending selling the stock.

Looking ahead, the consensus forecast among analysts is that UDR will deliver earnings per share (EPS) of $1.72 in the upcoming year. If the analysts' predictions hold true, this would represent a significant 24.4% increase in EPS on a year-over-year basis.

Examining UDR's stock performance, we find that since the last quarterly report on March 31, 2024, the stock price has risen by 10%. However, when considering the stock's performance on a year-over-year basis, it has experienced a slight decline of 0.8%. During this period, UDR has trailed behind the broader market represented by the S&P 500, which has seen a decrease of 25.9%.

In terms of Michael Lewis's credibility as an analyst, WallStreetZen ranks them in the top 25% out of 4,609 Wall Street analysts. Lewis specializes in the Technology and Real Estate sectors and boasts an average return of 1.8% and a win rate of 55%.

UDR, Inc., formerly known as United Dominion Realty Trust and United Dominion Residential Communities, is a Real Estate Investment Trust (REIT) focused on investing in multifamily communities in targeted U.S. markets. As of September 30, 2020, UDR owned or had an interest in 51,649 apartment units. The company, founded in the early 1970s, is headquartered in Highlands Ranch, CO.

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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.