Wells Fargo Upgrades Essex Property Trust (ESS) to Outperform, Top Pick

Wells Fargo analyst Jeffrey J. Donnelly upgraded Essex Property Trust (NYSE: ESS) from Market Perform to Outperform.

The analyst upgrades the Multifamily Sector recommendation to Overweight and upgrades ESS to Outperform while labeling it a Top Pick.

He comments "With the defeat of Proposition 10 and the potential repeal of CostaHawkins in the rear-view mirror, we believe Essex and its West Coast concentration should outperform the peer group average, particularly as shares have lagged (relatively) on a P/NAV basis and now trade a slight discount to our NAV estimate, versus an average 4% premium from 2015-2018. Supply pressure across ESS’s market footprint, while above historical averages, are among the lowest of the group (new supply expected to average 1.7% of stock annually through 2020 vs 1.1% annually since 2000)."

For an analyst ratings summary and ratings history on Essex Property Trust click here. For more ratings news on Essex Property Trust click here.

Shares of Essex Property Trust closed at $262.60 yesterday.

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