Scotiabank Upgrades UDR, Inc. (UDR) to Sector Outperform, 'we see a relative valuation discount'

Scotiabank analyst Nicholas Yulico upgraded UDR, Inc. (NYSE: UDR) from Sector Perform to Sector Outperform with a price target of $45.00 (from $44.00).

The analyst comments "We are upgrading UDR to Sector Outperform from Sector Perform as we see a relative valuation discount (-0.5x/-1.1x 2024E P/FFOPS and P/AFFOPS discount to the Multifamily peer average) that offers an attractive entry point. In our view, UDR’s high-quality portfolio offers (1) manageable supply pressure through 2024 (2.4% supply % of stock vs. 4.0% for Sunbelt portfolios MAA and CPT), and (2) above-peer expected 2024 SSREV growth (3.3% vs. MF REIT-average 3.1%). We are reaffirming our broader Multifamily thesis calling for a strategy of favoring portfolios where we forecast less supply-risk (maintain Sector Outperform rating on ESS) and avoiding larger Sunbelt exposure due to heavier expected supply pressure (maintain Sector Underperform rating on MAA)."

For an analyst ratings summary and ratings history on UDR, Inc. click here. For more ratings news on UDR, Inc. click here.

Shares of UDR, Inc. closed at $39.76 yesterday.

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