Mid-America Apartment Communities price target lowered to $158 at Truist

Published 19/08/2025, 20:10
Mid-America Apartment Communities price target lowered to $158 at Truist

Investing.com - Truist Securities lowered its price target on Mid-America Apartment Communities (NYSE:MAA) stock to $158.00 from $171.00 on Tuesday, while maintaining a Buy rating on the shares. The stock, currently trading at $141.85, sits near its 52-week low of $137.32, with a market capitalization of $17 billion. According to InvestingPro analysis, MAA appears overvalued at current levels.

The firm adjusted its outlook based on a more conservative same-store growth forecast amid slumping national employment growth, reducing its 2026 normalized FFO estimate by $0.08 per share (0.9%).

Despite the price target reduction, Truist raised its 2025 normalized FFO estimate by one cent per share and noted that apartment supply is set to significantly decline.

Truist expects MAA to post improving same-store NOI and FFOps growth over the coming years, highlighting the combination of accelerating growth and discounted stock valuation as a positive setup.

The firm pointed out that MAA currently trades at a 6.2% implied cap rate, which prices the stock much cheaper than private market values. With a P/E ratio of 29.11, InvestingPro data shows the stock is trading at a high multiple relative to its near-term earnings growth potential. Subscribers can access 6 additional ProTips and comprehensive valuation metrics in the Pro Research Report.

In other recent news, Mid-America Apartment Communities reported its Q2 2025 earnings, showcasing an earnings per share (EPS) of $0.92, which exceeded analyst projections of $0.88. However, the company’s revenue slightly missed expectations, totaling $549.9 million compared to the anticipated $551.49 million. In terms of analyst activity, Mizuho (NYSE:MFG) upgraded the stock from Neutral to Outperform, though it lowered the price target to $150.00, citing expectations for accelerating blended rents and core growth in the coming years. Meanwhile, KeyBanc maintained an Overweight rating but reduced its price target to $170.00, reflecting a more gradual recovery in Sunbelt apartment fundamentals expected in the latter half of 2025. These developments provide a mixed outlook for Mid-America Apartment Communities, as analysts adjust their expectations based on recent performance and future projections.

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