AvalonBay Upgraded to “Buy” at Goldman Sachs (AVB)

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Multifamily dwelling REIT AvalonBay Communities, Inc. ( AVB ) on Wednesday caught a big upgrade from analysts at Goldman Sachs.

The firm said it upgraded AVB from "Neutral" to "Buy" while boosted its price target from $98 to $121. That new target implies an 11% upside to the stock's Tuesday closing price of $109.16.

Goldman Sachs cited the company's reasonable valuation in relation to other REITs, and noted it should benefit greatly on improvements in the current rent cycle.

AvalonBay shares rose 89 cents, or +0.8%, in premarket trading Wednesday.

The Bottom Line
We have been recommending shares of AvalonBay Communities ( AVB ) since Nov.30, 2010, when the stock was trading at $110.12. The company has a 3.27% dividend yield, based on last night's closing stock price of $109.16.

AvalonBay Communities, Inc. ( AVB ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks

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