Multifamily dwellings REIT AvalonBay Communities, Inc. (
) 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
AvalonBay shares were mostly flat in premarket trading
The Bottom Line
We have been recommending shares of AvalonBay Communities (
) 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. (
) 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
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