Update shared on 27 Nov 2025
Fair value Decreased 1.37%Equity Residential's analyst price target has been reduced by $0.98, as analysts have updated their expectations for softer profit margins and moderated revenue growth following recent sector reviews.
Analyst Commentary
Analyst opinions on Equity Residential have shifted following recent target and rating changes, highlighting a mix of optimism about the company’s long-term trajectory along with caution regarding near-term execution risks.
Bullish Takeaways- Bullish analysts continue to express confidence in Equity Residential’s longer-term positioning within the residential real estate investment trust sector.
- Despite the reduced price target, an Overweight rating signals that some expect the shares to outperform compared to peers.
- Ongoing updates in sector targets suggest that analysts anticipate the company’s portfolio may remain resilient in a dynamic real estate market.
- Bearish analysts cite moderated revenue growth and softer profit margins as leading reasons for reducing price targets and ratings.
- The recent downgrade to Neutral from Outperform reflects concerns about limited upside potential in the short term.
- Cautious perspectives note that macroeconomic conditions and sector-wide headwinds could weigh on valuation and earnings execution in the coming period.
- These changes underscore a more tempered outlook for growth, as analysts adjust expectations in response to industry developments.
What's in the News
- Equity Residential completed a share buyback tranche, repurchasing 1,541,818 shares for $99.06 million. This brings the total buyback since 2005 to 97.14% of authorized shares, amounting to $1,423.76 million (Key Developments).
- The company lowered its full-year 2025 earnings guidance and now expects EPS between $2.52 and $2.56. This adjustment is primarily due to lower expected property sale gains and weaker demand, especially in Washington D.C. (Key Developments).
- Same store revenue growth guidance for 2025 was also reduced, with the midpoint reset to 2.5% to 3.0%. This reflects softening demand and delayed income initiatives (Key Developments).
- For the fourth quarter of 2025, Equity Residential expects EPS between $0.59 and $0.63 and has maintained full-year physical occupancy guidance at 96.4% (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased slightly, moving from $71.53 to $70.56.
- Discount Rate has edged down marginally, from 7.24% to 7.23%.
- Revenue Growth Forecast has fallen, shifting from 4.17% to 3.99%.
- Net Profit Margin projection has declined, from 18.40% to 17.21%.
- Future Price-to-Earnings (P/E) Ratio has increased, rising from 52.7x to 55.8x.
Disclaimer
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