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Investing.com - Citizens JMP has reiterated its Market Outperform rating and $41.00 price target on American Homes 4 Rent (NYSE:AMH), a $14.9 billion market cap single-family rental company with a ’GOOD’ InvestingPro Financial Health score, following the company’s second-quarter 2025 results released on July 31.
American Homes 4 Rent reported core FFO of $0.47 per share, exceeding both Citizens’ expectation of $0.45 and the consensus estimate of $0.46 per share. The earnings beat was primarily attributed to NOI performance, which came in $10 million higher than projected. The company’s strong performance is reflected in its robust gross profit margin of 55.9% and revenue growth of 7.2% over the last twelve months.
Management raised its full-year 2025 Core FFO guidance by $0.03 at the midpoint, now implying 5.1% year-over-year growth. The company achieved 4.3% blended rent growth and 4.1% same-store NOI expansion during the quarter. Notably, AMH has maintained dividend payments for 13 consecutive years, with a current dividend yield of 3.4% and impressive dividend growth of 15.4% over the last twelve months. InvestingPro subscribers have access to additional insights through comprehensive Pro Research Reports, which provide deep-dive analysis of AMH and 1,400+ other US stocks.
Citizens JMP noted that American Homes 4 Rent is benefiting from strong demand and a positive mix shift in its lease expiration schedule. The firm pointed to higher interest rates making homeownership increasingly unaffordable, pushing more families toward single-family rental properties.
The research firm maintains its $41 price target, which represents a 10% forward twelve-month NAV discount, based on its view that fundamentals will continue to act as a tailwind across the single-family rental asset class for the foreseeable future.
In other recent news, American Homes 4 Rent reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share of $0.28, significantly higher than the forecasted $0.17. Additionally, revenue reached $457.5 million, exceeding the anticipated $450.51 million. This marks a notable earnings surprise for the company. Despite these positive results, Mizuho (NYSE:MFG) adjusted its price target for American Homes 4 Rent from $38.00 to $36.00. The adjustment was made due to concerns about the property tax outlook, although Mizuho maintained an Outperform rating. Furthermore, American Homes 4 Rent increased its full-year 2025 core funds from operations guidance to a midpoint of $1.86 per share. This represents a 3-cent increase from previous forecasts, indicating confidence in the company’s operational performance. These developments highlight the company’s recent financial achievements and adjustments in analyst perspectives.
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