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Investing.com - Mizuho lowered its price target on American Homes 4 Rent (NYSE:AMH) to $36.00 from $38.00 on Thursday, while maintaining an Outperform rating on the single-family rental housing company. With a current market capitalization of $12.94 billion and trading at $34.89, InvestingPro analysis suggests the stock is currently overvalued, though analyst targets range from $38 to $45.
The price target reduction comes despite AMH raising its full-year 2025 core funds from operations (FFO) guidance to a midpoint of $1.86 per share, representing a 3-cent increase from previous forecasts.
AMH increased its same-store revenue guidance by 25 basis points to 3.75%, reflecting improved bad debt outcomes, while simultaneously reducing its same-store expense guidance by 25 basis points to 3.75% due to better real estate tax outcomes and lower insurance costs.
The company revised its property tax growth forecast downward to the "high 3%" range from a previous mid-4% projection, contributing to a 50 basis point increase in AMH’s same-store net operating income (NOI) guidance to a 3.75% midpoint.
Better-than-expected development yields drove 2 cents of AMH’s 3-cent FFO guidance increase, with Mizuho subsequently raising its 2025/2026 FFO estimates to $1.86/$1.94 from $1.84/$1.92, implying year-over-year growth of 5.4% and 4.0% respectively.
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 (EPS) of $0.28, significantly higher than the forecasted $0.17. This represents a 64.71% surprise, indicating a stronger-than-anticipated performance. Revenue also exceeded projections, reaching $457.5 million compared to the expected $450.51 million. These results reflect positively on the company’s recent performance.
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