Arlington, Virginia-based AvalonBay Communities, Inc. (AVB) is a Real Estate Investment Trust (REIT) that owns, develops, redevelops, acquires and manages high-quality multifamily apartment communities. It is valued at a market cap of $25.2 billion.
This residential REIT has trailed behind the broader market over the past 52 weeks. Shares of AVB have declined 18.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.3%. Moreover, on a YTD basis, the stock is down 1.8%, while SPX has risen marginally.
Narrowing the focus, AVB has also underperformed the iShares Residential and Multisector Real Estate ETF (REZ), which gained 5.4% over the past 52 weeks and 7.6% on a YTD basis.
On Feb. 4, AVB reported its Q4 results, and its shares plunged 4.6% in the following trading session. The company’s core FFO per share improved 1.8% year-over-year to $2.85, surpassing consensus estimates by a penny. Additionally, its same-store residential revenue advanced 1.8% from the year-ago quarter to $680.5 million, while its same-store residential NOI increased 1.3%, reaching $467.1 million.
For fiscal 2026, ending in December, analysts expect AVB’s FFO per share to remain stable at $11.24 compared to the year-ago quarter. The company’s FFO surprise history is mixed. It topped consensus estimates in three of the last four quarters, while missing in the other quarter.
Among the 23 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on six “Strong Buy,” one "Moderate Buy,” and 16 "Hold” ratings.
The configuration is less bullish than a month ago, with seven analysts suggesting a “Strong Buy” rating.
On Feb. 13, Citigroup Inc. (C) analyst Nicholas Joseph maintained a "Neutral" rating on AVB but lowered its price target to $198, indicating an 11.6% potential upside from the current levels.
The mean price target of $198.18 suggests an 11.7% potential upside from the current levels, while its Street-high price target of $222.50 suggests a 25.4% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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