UPDATE: UBS Upgrades Mid-America Apartment Communities (MAA) to Buy

(updated with analyst comments)

UBS upgraded Mid-America Apartment Communities (NYSE: MAA) from Neutral to Buy with a price target of $107.00 (from $95.00).

Analyst Nick Yulico commented, "Despite some potential Sunbelt supply headwinds ahead, we view MAA's geographic diversification and Class B exposure (55% of NOI) to be defensive benefits relative to Multifamily peers. Since our January initiation, we have more clarity on earnings and the outlook for FY18 and are more confident in MAA achieving Post Properties' merger synergies, which should accrue in late FY17. This will lead to accelerating SSNOI growth for MAA in FY18 vs. FY17, we est., vs stable/decelerating growth among peers. We expect MAA's FY18 FFO multiple (15.3x) to converge closer to peers (18.2x avg. in Multifamily), allowing the stock to trade at a modest premium to NAV. Our new $107 price target is based on a 5% NAV premium, matching its avg. since 2008."

For an analyst ratings summary and ratings history on Mid-America Apartment Communities click here. For more ratings news on Mid-America Apartment Communities click here.

Shares of Mid-America Apartment Communities closed at $97.76 yesterday.

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