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Investing.com - Truist Securities lowered its price target on Camden Property Trust (NYSE:CPT) to $123.00 from $131.00 on Wednesday, while maintaining a Buy rating on the real estate investment trust. The $11.89 billion REIT currently trades at a P/E ratio of 76.24, according to InvestingPro data.
The firm cited expectations that national job growth is slowing slightly faster and earlier than previously anticipated, prompting a reduction in funds from operations (FFO) estimates for the company.
Despite the lowered price target, Truist Securities identified Camden Property Trust as its "highest conviction Buy" among apartment REITs, noting the stock has declined 6% year-to-date, making it the second-best performer in the firm’s apartment coverage universe behind only ELME.
The analyst expects Camden’s same-store net operating income (SSNOI) growth to improve next year as supply growth eases, supporting positive FFO and funds available for distribution (FAD) growth, followed by stronger growth in 2027.
Truist Securities believes Camden Property Trust is "significantly undervalued" at a 6.3% implied capitalization rate, with the new $123 price target representing a potential 16% return from current levels.
In other recent news, Camden Property Trust reported its second-quarter 2025 earnings, significantly surpassing analyst expectations. The company posted earnings per share of $0.74, which was a substantial increase over the forecasted $0.32. Revenue also exceeded projections, reaching $396.51 million compared to the anticipated $393.97 million. In another development, Stifel has upgraded Camden Property Trust’s stock rating from Hold to Buy, setting a price target of $122.75. This upgrade is attributed to the recovery in the Sunbelt market and a decrease in supply. Despite these positive earnings and analyst upgrades, Camden Property’s stock experienced a slight decline of 0.56% in trading, closing at $109.2. These recent developments highlight Camden Property Trust’s performance and analyst perspectives.
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