Evercore ISI Issues Pessimistic Forecast for AvalonBay Communities (NYSE:AVB) Stock Price

Key Points

• Evercore ISI has reduced its price target for AvalonBay Communities (AVB) from $216.00 to $214.00, indicating a potential upside of 15.90% from the company's previous close.
• Multiple brokerages have recently adjusted their ratings for AvalonBay, with Mizuho and UBS also lowering their price targets, while Barclays and others have maintained or increased theirs.
• AvalonBay reported earnings of $2.82 per share for the last quarter, beating estimates, but its revenue of $689.90 million fell short of expectations, highlighting challenges in the current market environment.

AvalonBay Communities (NYSE:AVB - Get Free Report) had its price objective reduced by Evercore ISI from $216.00 to $214.00 in a note issued to investors on Monday,Benzinga reports. The firm currently has an "in-line" rating on the real estate investment trust's stock. Evercore ISI's price target would indicate a potential upside of 15.90% from the company's previous close.

A number of other brokerages have also recently commented on AVB. Mizuho reaffirmed a "neutral" rating and issued a $199.00 price target (down from $213.00) on shares of AvalonBay Communities in a research note on Thursday, August 14th. Barclays lifted their target price on shares of AvalonBay Communities from $228.00 to $229.00 and gave the stock an "equal weight" rating in a report on Tuesday, September 30th. UBS Group cut their price target on shares of AvalonBay Communities from $238.00 to $216.00 and set a "neutral" rating for the company in a report on Tuesday, July 15th. Weiss Ratings restated a "hold (c+)" rating on shares of AvalonBay Communities in a research report on Saturday, September 27th. Finally, BNP Paribas Exane downgraded AvalonBay Communities from an "outperform" rating to a "neutral" rating in a research note on Monday, September 29th. Five research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $217.31.

AvalonBay Communities Stock Performance

Shares of NYSE AVB opened at $184.64 on Monday. The company has a market capitalization of $26.29 billion, a P/E ratio of 22.74, a price-to-earnings-growth ratio of 2.66 and a beta of 0.86. The business's 50-day moving average price is $191.17 and its two-hundred day moving average price is $199.12. AvalonBay Communities has a one year low of $180.40 and a one year high of $239.29. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.70 and a quick ratio of 0.70.

AvalonBay Communities (NYSE:AVB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The real estate investment trust reported $2.82 earnings per share for the quarter, beating analysts' consensus estimates of $2.80 by $0.02. The firm had revenue of $689.90 million during the quarter, compared to the consensus estimate of $759.08 million. AvalonBay Communities had a net margin of 38.91% and a return on equity of 9.70%. During the same period in the prior year, the firm earned $2.77 EPS. AvalonBay Communities has set its FY 2025 guidance at 11.190-11.590 EPS. Q3 2025 guidance at 2.750-2.850 EPS. Analysts anticipate that AvalonBay Communities will post 11.48 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Norges Bank acquired a new stake in AvalonBay Communities in the 2nd quarter valued at approximately $1,394,225,000. Nuveen LLC purchased a new stake in AvalonBay Communities during the 1st quarter worth about $280,226,000. Invesco Ltd. boosted its holdings in shares of AvalonBay Communities by 70.2% in the 2nd quarter. Invesco Ltd. now owns 2,593,727 shares of the real estate investment trust's stock valued at $527,823,000 after buying an additional 1,069,793 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of AvalonBay Communities by 77.1% in the 2nd quarter. Bank of America Corp DE now owns 1,338,552 shares of the real estate investment trust's stock valued at $272,395,000 after purchasing an additional 582,724 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in AvalonBay Communities by 23.2% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 2,816,163 shares of the real estate investment trust's stock valued at $573,091,000 after purchasing an additional 530,274 shares during the last quarter. 92.61% of the stock is currently owned by hedge funds and other institutional investors.

About AvalonBay Communities

AvalonBay Communities, Inc is a real estate investment trust, which engages in the development, acquisition, ownership, and operation of multifamily communities. It operates through the following segments: Same Store, Other Stabilized, and Development or Redevelopment. The Same Store segment refers to the operating communities that were owned and had stabilized occupancy.

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