中美洲公寓在美国银行获得双倍升级至Buy

2024-08-12 20:54

Bank of America Securities handed out a double-upgrade on Mid-America Apartment Communities (NYSE:MAA) to Buy from Underperform as a recent large transaction in the apartment space give more confidence in MAA's valuation.
On Aug. 7, Equity Residential (EQR) agreed to acquire an apartment portfolio from Blackstone (BX) for $964M, a deal that had a cap rate at ~5%. "That compares to MAA's current implied cap rate of 6.0%, with we now think undervalues MAA," analyst Joshua Dennerlein wrote in a note to clients.
The analyst sees a significant spread between current applied and implied cat rates. At the same time, Street estimates have likely bottomed and fully reflect demand/supply imbalance in the Sunbelt. That translates to attractive valuation and low expectations.
" If 2H24 does not see a material softening in rents, we believe earnings estimate revisions are likely to be skewed to the upside," Dennerlein add
BofA's Buy rating on Mid-America (MAA) aligns with the SA Quant rating and average SA Analyst rating, both at Buy, and contrasts with the average Wall Street rating of Hold.

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