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Investing.com - Goldman Sachs downgraded Camden Property Trust (NYSE:CPT), a $14 billion market cap residential REIT, from Neutral to Sell on Wednesday, while lowering its price target to $106.00 from $118.00. According to InvestingPro, the company maintains a "GOOD" Financial Health score and offers a 3.6% dividend yield.
The investment bank cited concerns about disappointing rent growth prospects for the real estate investment trust, particularly in the second half of 2025 and into 2026.
Goldman Sachs analyst Julien Blouin noted that while demand is finally beginning to outpace deliveries in the rental market, this shift is not yet translating into improved pricing power for property owners.
The downgrade reflects ongoing challenges in Sunbelt markets, which continue to experience elevated vacancy levels despite improving demand-supply dynamics.
Goldman Sachs also pointed to a more gradual than expected drop-off in housing supply, with supply forecasts continuing to be revised higher, further pressuring Camden’s rental pricing power.
In other recent news, American Homes 4 Rent has reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.28, compared to the forecasted $0.17. The company also reported revenue of $457.5 million, exceeding the anticipated $450.51 million. This positive earnings surprise is attributed to strong NOI performance, which was $10 million higher than projected. Following these results, Citizens JMP reiterated its Market Outperform rating and maintained a price target of $41.00.
Conversely, Mizuho lowered its price target on American Homes 4 Rent to $36.00 from $38.00 due to concerns about the property tax outlook, although it maintained an Outperform rating. Despite this adjustment, the company raised its full-year 2025 core funds from operations (FFO) guidance to a midpoint of $1.86 per share, a 3-cent increase from previous forecasts. These developments highlight the mixed analyst sentiment surrounding American Homes 4 Rent’s future prospects.
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