Wang & Lee Group board approves 250-to-1 reverse share split
On Monday, Jefferies analyst Linda Tsai upgraded Camden Property Trust (NYSE:CPT) stock rating from Hold to Buy, alongside increasing the price target to $139 from the previous $117. The new target represents potential upside from the current price of $121.49, with InvestingPro data showing analyst targets ranging from $115 to $148. Tsai highlighted the company’s significant exposure to Sunbelt markets, which account for approximately 72% of Camden’s net operating income (NOI). The $13.16 billion market cap REIT has maintained a strong financial profile, earning a GOOD overall health score from InvestingPro’s comprehensive analysis.
The upgrade was influenced by a moderation in the projected supply growth within key Sunbelt markets, according to CoStar estimates. Notably, Charlotte is expected to see a decrease in supply growth by 69 basis points (bps), with Atlanta close behind at a reduction of 66 bps. Other markets such as Phoenix, Houston, and Dallas are also anticipated to experience lower supply growth rates. This strategic market positioning has contributed to Camden’s solid performance, with InvestingPro data showing the company has maintained dividend payments for 33 consecutive years, currently offering a 3.46% yield.
While Camden also has exposure to the District of Columbia, representing 13.8% of NOI, concerns about the potential impact on job growth due to the Department of Energy and Environment (DOGE) are being offset by government return-to-office mandates. Tsai pointed out that government jobs are not confined to the DC area, which helps to soften any localized impact.
Moreover, the supply growth in the District of Columbia is considered attractive, with CoStar forecasting an increase of 1.1% in 2026, placing it 37th among the 45 markets tracked. Camden has noted that its occupancy rates in the DC area are the highest among all its regions, which further supports the positive outlook provided by Tsai.
In other recent news, Camden Property Trust reported its fourth-quarter 2024 earnings, which showed a slight miss on earnings per share (EPS), coming in at $0.37 compared to the expected $0.41. However, the company’s revenue exceeded forecasts, reaching $386.32 million against an expected $384.24 million. Camden Property Trust also demonstrated strong operational capabilities, reporting core funds from operations (FFO) of $190.4 million, or $1.73 per share. Looking ahead, the company has set a 2025 core FFO guidance range of $6.60 to $6.90 per share, with plans to target $750 million in acquisitions and dispositions. The company completed significant construction projects and acquisitions, including Camden Durham and Camden Longmeadow Farms, which are nearing stabilization. Analyst firm RBC Capital Markets recently updated its outlook on Camden Property Trust, increasing the price target to $123 while maintaining a Sector Perform rating. RBC’s analyst noted the company’s stable leasing spreads and reduced operating expenses, though he expressed caution regarding ongoing supply challenges. Camden Property Trust’s strategic focus for 2025 includes market repositioning and optimizing its market presence.
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