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Fly News Breaks for November 25, 2019
Nov 25, 2019 | 06:27 EDT
BTIG analyst James Sullivan downgraded Essex Property Trust to Neutral from Buy, saying that while he continues to see the REIT as a "well-run company" with typically outperforming portfolio locations, the near term risks and uncertainties warrant a "move to the sidelines". The analyst notes that he no longer expects the strength in Orange County and Seattle to fully offset his anticipated weakness in the "tech markets" of northern California. Sullivan is also concerned with the political risk presented by the potential Prop 10 2.0 ballot measure in 2020 across California municipalities that could pressure the stock's valuation along with the REIT's early redemptions on preferred equity investments and a maturing collateralized mortgage obligation.
News For ESS From the Last 2 Days
Jan 18, 2022 | 09:00 EST
Truist analyst Michael Lewis raised the firm's price target on Essex Property Trust to $378 from $366 and keeps a Buy rating on the shares as part of a broader research note previewing the 2022 outlook for REITs. The sector should perform roughly in line with the broader market as an improving economy supports healthy occupancy and rent growth, while rising interest rates weigh on the cost of capital and already-elevated REIT stock valuations, the analyst tells investors in a research note.