Truist lifts Camden Property Trust target to $131, maintains Buy

On Monday, Truist Securities updated its assessment of Camden Property Trust (NYSE:CPT), raising the price target from $129.00 to $131.00 while reiterating a Buy rating on the stock. The action reflects the firm’s positive outlook on the real estate investment trust (REIT) specializing in apartments. According to InvestingPro data, Camden Property Trust currently trades at $119.63, with a market capitalization of $13 billion, and maintains an impressive 33-year streak of consistent dividend payments.

The analyst at Truist Securities highlighted the current valuation of Camden Property Trust’s shares as an opportunity for investors, noting that the stock is trading at an attractive price. The analyst’s recommendation is based on the company’s position within its industry; Camden Property Trust’s implied capitalization rate of 5.9% is believed to significantly undervalue its portfolio when compared to peers. The new price target suggests a potential return of 13%. However, InvestingPro analysis indicates the stock is slightly overvalued at current levels, with a P/E ratio of 109.5x and trading near its 52-week high of $127.69.

Camden Property Trust has shown commendable performance within the apartment REIT sector, being the second-best performer over the past 12 months with a 12% increase, only trailing behind MAA, which recorded an 18% rise. Despite this success, Truist Securities still sees Camden Property Trust as one of their top picks in the category. The REIT currently offers a dividend yield of 3.51%, and InvestingPro data reveals it has raised its dividend for three consecutive years, demonstrating strong commitment to shareholder returns.

Truist Securities expects Camden Property Trust to face the worst same-store net operating income (SSNOI) growth of this cycle at +0.1% for the year due to an anticipated slowdown in U.S. job growth and a record level of new supply in its markets. However, the firm projects an uptick in new rent spreads from the first quarter of 2025 through the second quarter of 2027 and improved year-over-year SSNOI growth from the third quarter of 2025 through the second quarter of 2027. Furthermore, the analysts forecast enhanced year-over-year normalized funds from operations (NFFOps) growth starting from the first quarter of 2026 through the second quarter of 2027.

The update from Truist Securities comes as the company continues to navigate a challenging economic landscape with a strategic focus on growth and value creation for its shareholders. Camden Property Trust’s management has not issued any statements regarding the updated price target and maintained rating at the time of reporting.

In other recent news, Camden Property Trust reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.36, compared to the forecasted $0.34. The company also exceeded revenue projections, posting $390.57 million against a forecast of $389 million. Camden Property Trust has raised its full-year Core FFO guidance from $6.75 to $6.78 per share, indicating confidence in its financial outlook. Additionally, the company announced significant acquisitions and development projects, including a $199 million investment in new properties and a $184 million development in Nashville. In shareholder matters, Camden Property Trust held a meeting where ten Trust Managers were elected, executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent accounting firm for fiscal year 2025. Analyst firms have shown interest in Camden’s strategic focus on high-growth markets, with some noting the company’s proactive approach in the Sunbelt region. These developments reflect Camden Property Trust’s ongoing efforts to strengthen its market position and financial performance.

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