Wolfe Research Downgrades Invitation Homes (INVH) to Peerperform

(Updated - November 29, 2022 6:20 PM EST)

Wolfe Research analyst Andrew Rosivach downgraded Invitation Homes (NYSE: INVH) from Outperform to Peerperform.

The analyst comments "In this note, we are downgrading our existing SFR REITs under coverage (AMH and INVH) to Peer Perform, while taking the sector to market weight. We are doing this for several reasons, including what we believe is going to be a more challenging operating environment (including a return to seasonality and turnover), an elevated cost of capital (impacting external growth), and our anticipation of increased bad debt. The group as a whole has had an impressive performance since the onset of the pandemic from an operational standpoint (increasing occupancy and rate meaningfully), benefiting from a number of tailwinds including a need for additional space, a migration to the Sun Belt, and an extremely tight housing market. We acknowledge a number of favorable tailwinds in place, including a very challenging housing market for prospective buyers, a continued need for additional space driven by WFH flexibility, and further Sun Belt migration. However, for the reasons we cite below, in addition to extremely difficult comps due to such a strong performance since the onset of the pandemic, we are becoming more cautious on the space and believe relative outperformance will be difficult to continue."

For an analyst ratings summary and ratings history on Invitation Homes click here. For more ratings news on Invitation Homes click here.

Shares of Invitation Homes closed at $30.99 yesterday.

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