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UBS analyst Michael Goldsmith not too long ago began protection of Invitation Properties (NYSE:INVH) with a Purchase ranking on the premise of rising demand for renting a single-family residence.
“We consider there is a lengthy runway” for SFR demand towards a backdrop of “a US housing scarcity, ageing Millennials, & excessive value of residence possession,” he wrote in a Thursday notice to purchasers.
On high of that, the REIT’s “infill product ought to see restricted provide with its well-positioned tenant base absorbing hire will increase,” the notice stated. That, along with unhealthy debt tailwinds, is anticipated to ship same-store income progress above the corporate’s long-term common by 2023 and subsequent yr.
INVH was nearly flat in Friday noon buying and selling, on monitor to finish the week ended September 29 2.3% decrease.
Goldsmith’s Purchase ranking diverged from the SA Quant system ranking of Maintain and aligned with the common sell-side analyst ranking.