stifel analysts maintain buy rating on equity residential stock

Published 05/06/2025, 13:30
stifel analysts maintain buy rating on equity residential stock

On Thursday, Stifel analysts reaffirmed their Buy rating for Equity Residential stock (NYSE:EQR), maintaining a price target of $69.01. With a market capitalization of $27 billion, EQR stands as a prominent player in the Residential REITs industry. According to InvestingPro data, the company has delivered a 3.81% revenue growth over the last twelve months. The analysts noted that the fundamentals for the second quarter are unfolding as expected or slightly better for most lodging REITs.

They highlighted a slight downgrade in RevPAR estimates for 2025/2026 by STR earlier this week. Despite this, the second quarter has seen a boost from increased leisure activity due to the Easter holiday shift and robust group demand. The company’s strong financial position is reflected in its impressive 33-year streak of consecutive dividend payments, currently yielding 4.01%. InvestingPro analysis shows the company maintains a GOOD overall Financial Health Score.

The report also pointed out that this growth was partially offset by weaker inbound international and government-related travel. The overall outlook from the analysts remains positive for Equity Residential, as indicated by the maintained Buy rating.

Equity Residential continues to navigate the evolving market conditions, with the analysts expressing confidence in the company’s performance and future prospects.

In other recent news, Equity Residential reported its first-quarter 2025 earnings, significantly surpassing analyst expectations with an EPS of $0.67 compared to the forecasted $0.26. However, the company’s revenue slightly missed projections, coming in at $760.81 million against the anticipated $768.11 million. Equity Residential and its operating partnership, ERP Operating Limited Partnership, have also renewed their "at the market" offering program, enabling the sale of up to 13 million common shares. This distribution agreement involves several major banks, including JPMorgan Chase (NYSE:JPM) Bank and Barclays (LON:BARC) Bank PLC, and includes forward sale agreements that could result in future cash proceeds for the company.

The company maintains a share repurchase program authorized for up to 13 million common shares. Despite these developments, Equity Residential has expressed a strategic focus on capital recycling, with plans for $1.5 billion in acquisitions throughout 2025. The company also highlighted its ongoing expansion of AI capabilities in leasing processes, aimed at enhancing operational efficiency. These recent updates reflect Equity Residential’s active management of its financial and operational strategies in a dynamic market environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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