Lucid Capital Markets Starts Millrose Properties (MRP) at Buy, PT $40

Lucid Capital Markets analyst Craig Kucera initiates coverage on Millrose Properties (NYSE: MRP) with a Buy rating and a price target of $40.00.

The analyst comments "We are initiating coverage of Millrose Properties, Inc. (MRP) with a Buy rating and a $40 price target. MRP is unique in that it is a land bank structured as a REIT, offering a current ~8% dividend yield we expect to grow with earnings as management anticipates distributing ~100% of AFFO. MRP was established in 1Q25 as a spin-off from Lennar Corporation (LEN, NR), which contributed the majority of its on-balance-sheet land holdings along with cash. As of 2Q25, MRP’s portfolio encompassed nearly 129,000 homesites across 1,000 potential single-family residential communities in 29 states, as growth among third-party homebuilding clients has been robust. Our $40 price target represents 13x 2026E AFFO, in-line with where MRP currently trades on 2025E AFFO and the homebuilding sector trading at 13x 2025E EPS and is 113% of forward book vs. the homebuilding sector trading at 147%."

For an analyst ratings summary and ratings history on Millrose Properties click here. For more ratings news on Millrose Properties click here.

Shares of Millrose Properties closed at $34.35 yesterday.

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