Mizuho lowers Invitation Homes stock price target on growth outlook

Published 14/08/2025, 12:06
Mizuho lowers Invitation Homes stock price target on growth outlook

Investing.com - Mizuho has reduced its price target on Invitation Homes (NYSE:INVH), a prominent player in the Residential REITs industry with an $18.7 billion market cap, to $32.00 from $36.00 while maintaining an Outperform rating. According to InvestingPro data, the company maintains a GOOD financial health score and offers a 3.8% dividend yield.

The firm cited no changes to Invitation Homes’ core operating or funds from operations (FFO) guidance, which remains at a midpoint of $1.91 per share, but expressed optimism about the company’s setup heading into the second half of 2025 and 2026. The company’s stable outlook is supported by its low price volatility (Beta: 0.78) and steady revenue growth of 5.09% over the last twelve months.

Mizuho highlighted that Invitation Homes faces easier year-over-year comparisons and has lower implied blended rent expectations for the second half of 2025, showing a 60 basis point deceleration versus American Homes 4 Rent’s 20 basis point deceleration.

The research firm noted that Invitation Homes’ full-year 2025 guidance embeds an 80 basis point occupancy decline to 96.5%, compared to its second-quarter 2025 occupancy of 97.2%.

Mizuho slightly reduced its FFO estimates for Invitation Homes to $1.91 for 2025 and $2.02 for 2026, down from previous estimates of $1.92 and $2.04, respectively, which aligns with consensus and implies 1.4% year-over-year growth in 2025 and 6.0% growth in 2026. Notably, two analysts have recently revised their earnings estimates upward for the upcoming period.

In other recent news, Invitation Homes reported its second-quarter earnings for 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $0.23, surpassing the projected $0.19, representing a 21.05% surprise. Revenue also slightly exceeded forecasts, reaching $681 million compared to the anticipated $673.88 million. Following these results, Oppenheimer maintained its Outperform rating on Invitation Homes with a price target of $41, citing stable performance and management’s reiterated guidance. Similarly, Citizens JMP reaffirmed its Market Outperform rating and set a $40 price target, noting that the company’s Core Funds from Operations (FFO) of $0.48 per share met both their expectations and consensus estimates. Management has kept its full-year fiscal 2025 guidance consistent across all metrics. These developments reflect the company’s ongoing stable performance and positive outlook from analysts.

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