Update shared on15 Oct 2025
Fair value Decreased 1.05%Equity Residential's analyst price target has decreased slightly, falling from approximately $74.58 to $73.80. Analysts cite softer revenue growth expectations and recent sector underperformance as factors contributing to this adjustment.
Analyst Commentary
Recent analyst updates on Equity Residential reflect a mixed outlook, with both positive signals and cautionary notes influencing price targets and ratings. The following sections outline key bullish and bearish takeaways drawn from recent research coverage.
Bullish Takeaways- Some bullish analysts note that apartment real estate investment trusts are now trading at uncommon discounts compared to other property sectors. This could present value opportunities for long-term investors.
- After a significant selloff following Q2 earnings, expectations have been reset. This potentially provides room for recovery if execution improves and fundamental trends stabilize.
- Supply in the apartment real estate investment trust market appears to be constricting, which could eventually support stronger rent growth and enhance portfolio performance.
- Sentiment among certain investors is seen as overly negative. Any positive surprise in rent trends or occupancy could drive a re-rating in valuation.
- Bullish price target reductions suggest a general softening in revenue growth expectations. This signals challenges to near-term fundamentals and headwinds for robust valuation expansion.
- The sector has underperformed for much of the year, making it the fourth worst-performing real estate investment trust subsector on a year-to-date basis.
- Some bearish analysts have shifted to a more neutral stance, indicating reduced confidence in outperformance relative to peers going forward.
- Even with lower price targets, corporate execution and persistent market volatility may limit the upside. This has prompted cautious adjustments to recommendations.
What's in the News
- Equity Residential has issued operating guidance for the full year 2025, reaffirming expectations of same store revenue growth in the range of 2.6% to 3.2% and a physical occupancy rate of 96.4% for the year (Key Developments).
- The company reported that from April 1, 2025 to June 30, 2025, it repurchased zero shares under its ongoing buyback program. The company has already completed the repurchase of 279,124,289 shares, equivalent to 96.73% of the total authorized under the plan announced in 2005 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has fallen slightly, declining from $74.58 to $73.80.
- Discount Rate has edged down marginally, moving from 7.20% to 7.16%.
- Revenue Growth expectations have softened somewhat, decreasing from 4.28% to 4.19%.
- Net Profit Margin has narrowed fractionally, from 19.40% to 19.22%.
- Future P/E ratio has dipped moderately, dropping from 55.00x to 53.39x.
Disclaimer
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