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Investing.com - Barclays downgraded Camden Property Trust (NYSE:CPT) stock rating from Overweight to Equalweight while reducing its price target to $118.00 from $127.00. The new target still represents a 12.8% upside from CPT’s current price of $104.64, though InvestingPro data suggests the stock is trading near its Fair Value.
The real estate investment trust, which focuses on multifamily apartment communities, has outperformed its apartment sector peers by approximately 400 basis points year-to-date, according to Barclays. The firm noted CPT has outperformed competitor AvalonBay Communities specifically by about 900 basis points during the same period. This outperformance comes despite CPT’s year-to-date total return of -7.28% and one-year return of -12.42%.
Despite Camden reporting slightly better-than-expected quarterly results and implementing share repurchases, Barclays indicated the company’s total return profile now positions it "closer to the middle of the pack" compared to other stocks in its coverage universe. The $11.3 billion market cap REIT currently trades at a P/E ratio of 42.49, which InvestingPro identifies as a high earnings multiple relative to peers.
Barclays highlighted that Camden’s third-quarter new lease spreads remained negative at -2.5% year-over-year, which represented a sequential decline from -2.1% in the second quarter. The firm expressed concern about this trend.
The downgrade reflects Barclays’ view that this negative leasing dynamic may not improve significantly for Sunbelt-focused apartment operators like Camden until the beginning of spring leasing season, potentially around March-April at the earliest.
In other recent news, Camden Property Trust reported better-than-expected earnings for Q3 2025, with an earnings per share (EPS) of $1.00, surpassing the forecasted $0.45 by a significant margin. This represents a 122.22% EPS surprise, although the company experienced a slight revenue shortfall, reporting $395.68 million against a projected $398.81 million. Despite the revenue miss, Camden Property Trust’s positive earnings performance has bolstered investor confidence. Additionally, the company raised its full-year 2025 funds from operations (FFO) guidance by $0.04. In other developments, Cantor Fitzgerald adjusted its price target for Camden Property Trust, lowering it to $105 from $115, while maintaining a Neutral rating. These recent developments highlight the mixed reactions in the market concerning Camden Property Trust’s financial outlook.
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