AvalonBay Upgraded to “Buy” at Keybanc (AVB)

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Multifamily dwellings REIT AvalonBay Communities, Inc. ( AVB ) on Friday caught a big upgrade from analysts at Keybanc.

The firm said it upgraded AVB from "Hold" to "Buy" with a $124 price target. That target implies an 11% upside to the stock's Thursday closing price of $111.45.

A KeyBanc analyst commented, "We expect AVB's class A apartments will experience above average NOI and NAV growth as the economy improves. In our view, AVB has the greatest exposure to high growth markets among its peers: 60% of the Company's NOI is derived from supply constrained, high density cities/areas with improving job growth, such as New York, Boston, Northern California and Seattle. Moreover, AVB has the largest development pipeline in the space, with improving yields (7.2% on future starts vs. in-place of 6.0%) that we expect will generate significant NAV in the medium term."

AvalonBay shares were mostly flat in premarket trading Friday.

The Bottom Line
We have been recommending shares of AvalonBay Communities ( AVB ) since Nov.30, when the stock was trading at $110.12. The company has a 3.20% dividend yield, based on last night's closing stock price of $111.45.

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 The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: AVB

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