Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

This real estate name could gain 19% as demand grows for single-family home rentals, Goldman says

by
December 8, 2022
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Meta set to report fourth-quarter earnings after the bell

Biden and McCarthy clash ahead of White House debt ceiling meeting

Real-estate investment trust American Homes 4 Rent is well-positioned as single-family home rentals become more in demand, according to Goldman Sachs. Analyst Chandni Luthra upgraded the stock to buy from neutral, citing the company’s focus on the area of rentals slated to become hotter in the changing economy. Her price target of $39 implies a 19.1% upside over where it closed Wednesday. “We remain constructive on the strong demand for housing amidst a shortage crisis, and single-family rental (SFR) is well positioned as homeownership continues to be very expensive, boding well for the long-term fundamental,” she said in a note to clients. Homebuilders have slowed new home construction amid inflation and supply chain challenges. Potential homebuyers may also be deterred by elevated mortgages, which are a result of higher interest rates. These factors all help single-family rentals, Luthra said, as more people get pushed away from buying but still need housing. Though rental prices are coming off pandemic highs, Luthra said American Homes 4 Rent should be able to keep them above pre-pandemic levels. American Homes 4 Rent has increased its number of new homes, moving from around 600 in 2018 to nearly 2,150 in 2022. These newly constructed homes are also cheaper to maintain, Luthra said, which can bring costs down. Meanwhile, the company is feeling labor and input cost relief as demand for homebuilding declines. But Luthra said inflation remains in costs related to construction processes that come after drywall is installed. Comparatively, Luthra said she sees a clearer growth story in American Homes 4 Rent than competitors such as Invitation Homes and Tricon Residential despite both also benefiting from the focus on single-family home rentals. Invitation has been hurt by bad debt, higher property taxes and ongoing litigation, she had. Higher leverage and interest rates, paired with a slowed growth without acquisitions, has hampered Tricon. — CNBC’s Michael Bloom contributed to this report.

ShareTweetPin

Related Posts

Meta set to report fourth-quarter earnings after the bell

by
February 1, 2023
0

In this article META Follow your favorite stocksCREATE FREE ACCOUNT Mark Zuckerberg, chief executive officer of Meta Platforms Inc., left,...

Biden and McCarthy clash ahead of White House debt ceiling meeting

by
February 1, 2023
0

House Republican leader Kevin McCarthy speaks to reporters following a meeting with U.S. President Joe Biden and other congressional leaders...

FedEx is laying off 10% of its officers and directors amid cooling demand

by
February 1, 2023
0

In this article FDX Follow your favorite stocksCREATE FREE ACCOUNT Raj Subramaniam, FedEx Corporation, speaks at the U.S. Chamber of...

Electric truck maker Rivian to lay off 6% of its workforce as EV price war concerns grow

by
February 1, 2023
0

In this article RIVN Follow your favorite stocksCREATE FREE ACCOUNT Workers inspect a Rivian R1T electric vehicle (EV) pickup truck...

Stocks making the biggest moves midday: Peloton, AMD, Snap and more

by
February 1, 2023
0

In this article EATPTONEAMOSMGSYKMTCHSNAPAMDFL Follow your favorite stocksCREATE FREE ACCOUNT A sign hangs above the entrance of a Foot Locker...

Next Post

Europe's energy grids face first major winter stress test as Arctic blast takes hold

JPMorgan upgrades this materials stock, says it can weather decrease in residential construction

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Buying a car from the factory sounds expensive, but it can actually save you money. Here’s how to do it.

    0 shares
    Share 0 Tweet 0
  • The states that won’t tax military retirement in 2022

    0 shares
    Share 0 Tweet 0
  • Roth TSP vs. Roth IRA: How Do They Compare?

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com