KeyBanc lowers Mid-America Apartment Communities stock price target on gradual recovery

Published 13/08/2025, 15:50
KeyBanc lowers Mid-America Apartment Communities stock price target on gradual recovery

Investing.com - KeyBanc has lowered its price target on Mid-America Apartment Communities (NYSE:MAA) to $170.00 from $180.00 while maintaining an Overweight rating on the stock. Currently trading near its 52-week low at $139, MAA offers a 4.38% dividend yield and has maintained dividend payments for 32 consecutive years, according to InvestingPro data.

The adjustment reflects expectations for a more gradual recovery in Sunbelt apartment fundamentals during the second half of 2025, according to KeyBanc’s research note released Wednesday.

Despite the reduced target, KeyBanc highlighted positive indicators including moderating supply, positive net absorption, historically high retention, and easing comparisons that are expected to drive continued reacceleration in lease rate growth for the apartment REIT.

The firm specifically noted that July new lease rate growth represents MAA’s best month of the year, pointing toward a widening leasing spread versus the prior year and accelerating improvement in the company’s performance.

While elevated levels of new supply continue to impact Sunbelt apartment fundamentals in the near term, KeyBanc expects these pressures to lessen in the second half of 2025 and into 2026, with new deliveries in MAA’s markets projected to decrease by more than 50% year-over-year to approximately 2% of existing stock.

In other recent news, Mid-America Apartment Communities Inc. reported its Q2 2025 earnings, with an earnings per share (EPS) of $0.92, exceeding analyst expectations of $0.88 by 4.55%. However, the company’s revenue slightly missed projections, coming in at $549.9 million compared to the anticipated $551.49 million. These mixed results contributed to a decline in the stock price, although this is not the focus here. The earnings report reflects the company’s performance amid broader market conditions. Investors are likely to consider both the EPS beat and the revenue shortfall in their evaluations. The results highlight the importance of closely monitoring both earnings and revenue figures for a comprehensive understanding of the company’s financial health.

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