Equity Residential (EQR): Fresh Analyst Upgrade Renews Focus on Valuation and Upside Potential

A recent analyst upgrade has placed Equity Residential (EQR) in the spotlight, highlighting a rare value opportunity. The company’s steady apartment demand, broad portfolio, and resilient leasing trends are fueling this renewed investor confidence.

See our latest analysis for Equity Residential.

Recent weeks have seen Equity Residential’s share price dip slightly, now at $63.33. The bigger story, however, is its momentum. After a challenging year with a 1-year total shareholder return of -13.34%, long-term holders have still enjoyed a 65% total return over five years. The renewed bullishness and recent upgrade highlight how changing risk perceptions and the company’s strong fundamentals are shifting sentiment back in EQR’s favor.

If the shift in investor confidence around Equity Residential has you looking for your next opportunity, now’s a great time to broaden your investing horizons and discover fast growing stocks with high insider ownership

With EQR trading below analyst targets and its fundamentals in focus, the key question is whether the stock is truly undervalued or if the market has already factored in all the future upside. Does a genuine buying opportunity remain?

Most Popular Narrative: 14.2% Undervalued

Equity Residential’s most followed fair value narrative puts its fair value at $73.80, implying meaningful upside from the last close of $63.33. Rather than simply tracking the price, the narrative combines the company’s earnings power, market dynamics, and risk outlook to build an actionable valuation.

“A significant reduction in new multifamily supply, especially in high-barrier coastal markets like New York, San Francisco, and Washington, D.C., is expected to increase pricing power for Equity Residential over the next 12-24 months. This supports stronger revenue and net operating income growth. High housing costs and limited single-family home availability are driving a shift toward long-term renting among well-compensated Millennials and Gen Z. This trend sustains robust occupancy rates and minimizes rent concessions, which underpins stable or growing cash flow.”

Read the complete narrative.

Want to know what ambitious growth forecasts fuel this attractive valuation? The narrative is built around a future profit “reset” and aggressive assumptions about market rent power. Discover which levers, from profit margins to demographic trends, are expected to unlock that price target.

Result: Fair Value of $73.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistently weak job growth or fresh supply spikes in key cities could quickly reduce EQR’s pricing power and put pressure on revenue growth.

Find out about the key risks to this Equity Residential narrative.

Build Your Own Equity Residential Narrative

If you see things differently or want to dig into the details yourself, creating your own viewpoint takes just a few minutes. Do it your way

A great starting point for your Equity Residential research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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