Camden Property Stock Gets Stifel Upgrade On Sunbelt Recovery, Attractive Valuation

According to TheFly, the brokerage raised the stock’s rating to ‘Buy’ from ‘Hold’ and kept the price target unchanged at $122.75.

Camden Property Trust (CPT) stock got an upgrade from Stifel on demand recovery in America’s Sunbelt.

According to TheFly, the brokerage raised the stock’s rating to ‘Buy’ from ‘Hold’ and kept the price target unchanged at $122.75. The price target still implied an upside of 12.7% compared to the stock’s previous closing price. According to fiscal.ai data, the stock has a consensus price target of $123.63.

Stifel analysts believe that Sunbelt demand is recovering, housing supply is dropping, and it is time to get more constructive on the name.

The brokerage also noted that, following the underperformance of the multi-family real estate investment trusts (REITs), valuation has become more attractive, with the sector's next-12-month funds from operations (FFO) multiple of 15.8 times now nearly one standard deviation below its 10-year average of 18.5 times.

Retail sentiment on Stocktwits about Camden Property Trust was in the ‘neutral’ territory at the time of writing.

Camden and its peers have experienced a slowdown in high-growth Sunbelt markets, attributed to elevated housing inventories and high mortgage rates. Camden Chairman Richard Campo noted earlier in August that the company was “treading water” in the Sunbelt markets because of this excess supply situation.

Its second-quarter core FFO was flat compared to the same quarter last year. However, the company stated that it was seeing strong demand in the Sun Belt and expected to see continued growth over the next three years.

According to the National Association of Realtors data, at the current sales pace, July’s housing inventory represents a 4.6-month supply, declining from 4.7 months in June but higher than the 4-month supply last year.

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