Gold prices steady ahead of Fed decision; weekly weakness noted
On Friday, Citi analysts downgraded American Homes 4 Rent (NYSE: NYSE:AMH) stock rating from Buy to Neutral. The decision comes with a revised price target of $41.00, sitting within the broader analyst range of $37-$45. Currently trading at $36.86, AMH shows a P/E ratio of 36x, suggesting a premium valuation according to InvestingPro data.
Citi analysts expressed continued support for the single-family rental (SFR) sector, maintaining an overweight position in their model portfolio for both American Homes 4 Rent and the sector as a whole. The $15.55B market cap company maintains a GOOD financial health score and has shown steady revenue growth of 7% over the last twelve months. Despite the downgrade, the analysts highlighted a preference for Invitation Homes (NYSE: NYSE:INVH), citing a potential for greater earnings growth.
The analysts pointed out that Invitation Homes’ stock has been underperforming due to recent negative catalysts. However, they anticipate that stability in renewal rate growth could lead to a return to a more typical valuation for the company.
Citi analysts believe Invitation Homes has an additional 500 basis points of upside compared to American Homes 4 Rent over the next year. As a result, they have upgraded Invitation Homes to a Buy rating.
In other recent news, American Homes 4 Rent announced its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.30, significantly higher than the forecasted $0.16. The company’s revenue also surpassed projections, reaching $459.28 million against a forecast of $456.37 million. Additionally, Keefe, Bruyette & Woods raised its price target for American Homes 4 Rent to $40 from $38, maintaining a Market Perform rating, following the company’s strong first-quarter performance and observed rent growth in April. The company reported a year-over-year increase in same-home Net Operating Income (NOI) by 3.5%, with average occupancy rates rising to 95.9%. American Homes 4 Rent also priced a public offering of $650 million in senior notes with a 4.950% annual interest rate, due in 2030, aiming to use the proceeds for debt repayment and general corporate purposes. The company’s first-quarter results also showed an acceleration in average blended rent growth to 3.6% year-over-year. Furthermore, the company maintained its 2025 guidance, anticipating high occupancy rates and continued demand for single-family rentals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.