Update shared on 13 Nov 2025
Fair value Decreased 2.48%Equity Residential’s analyst price target has been reduced by $1.82 to $71.53. Analysts cite slightly lower fair value estimates and an updated sector outlook following recent research coverage.
Analyst Commentary
Recent updates in analyst coverage have provided fresh perspectives on Equity Residential, reflecting both positive and cautious sentiment about the company's outlook. These opinions are shaped by updated sector views and recent earnings forecasts.
Bullish Takeaways
- Bullish analysts continue to see long-term value in Equity Residential and are maintaining positive ratings despite minor target reductions.
- Recent coverage highlights the company’s resilience in the residential real estate sector, particularly as analysts prepare for the upcoming quarterly earnings season.
- Stability in valuation, even with target adjustments, is seen as a sign of confidence in the management’s operational execution.
Bearish Takeaways
- Some analysts have expressed caution and noted modest decreases in price targets, which reflect tempered growth expectations.
- Downgrades in rating signal concerns about sector headwinds and potentially slower-than-anticipated rental growth or demand.
- Updates in sector outlooks contribute to uncertainty, leading to more conservative stances on future performance and execution risks.
What's in the News
- Equity Residential completed the repurchase of 1,541,818 shares between July and October 2025, totaling $99.06 million. This action finalizes the buyback program announced in 2005, with 97.14% of the plan executed. (Key Developments)
- The company lowered its full-year 2025 earnings guidance to an EPS range of $2.52 to $2.56, down from previous expectations of $2.96 to $3.02. This revision is primarily due to lower anticipated property sale gains and softened demand, notably in Washington D.C. (Key Developments)
- Fourth quarter 2025 guidance sets expected EPS between $0.59 and $0.63. Projected physical occupancy for the full year is holding steady at 96.4%. (Key Developments)
- Operating guidance for 2025 anticipates same store revenue growth between 2.5% and 3.0%. The revised midpoint reflects a weakening in demand late in the third quarter. (Key Developments)
Valuation Changes
- Fair Value Estimate has fallen by $1.82, moving from $73.35 to $71.53 per share.
- Discount Rate has risen slightly, increasing from 7.17% to 7.24%.
- Revenue Growth Projection edged lower, shifting from 4.19% to 4.17%.
- Net Profit Margin is marginally down, decreasing from 18.48% to 18.40%.
- Future P/E Ratio has declined from 53.73x to 52.75x, reflecting a modest adjustment in expected earnings valuation.
Disclaimer
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