Source: Stuart Mooney
Eric Wolfe from Wolfe Research Forecasts Bright Future for NYSE:AMH
Eric Wolfe, a seasoned analyst from Wolfe Research, recently set a price target of $34.50 for American Homes 4 Rent (NYSE:AMH), indicating a potential increase of approximately 10.08%. This increase represents a considerable jump from its current trading price of $31.34, providing investors with an optimistic outlook for the real estate investment trust (REIT).
American Homes 4 Rent is a leading REIT that focuses on acquiring, developing, and managing single-family homes as rental properties. The company’s mission is to provide quality rental homes in desirable neighborhoods across the United States. Wolfe’s price target serves as a testament to the company’s successful business model and its potential for further growth.
Institutional Investors Show Strong Confidence in AMH
Institutional investors, including Axa S.A. and First Trust Advisors LP, have significantly increased their stakes in AMH, signifying strong confidence in the company’s growth potential. Axa S.A. recently increased its stake by 13.6%, now holding 600,387 shares valued at $21.7 million. This move accounts for approximately 0.16% of the company.
In addition to Axa S.A., other financial institutions such as Hantz Financial Services Inc. and First Trust Advisors LP have also significantly increased their holdings in AMH. Hantz Financial Services Inc. reported a significant 922.2% rise in the second quarter, now owning 828 shares valued at $30,000.
First Trust Advisors LP, on the other hand, has made a notable investment in AMH by increasing its holdings by over 2,000% during the second quarter. The fund now owns 1,129,609 shares, valued at approximately $40.7 million, representing 0.30% of the company. These substantial increases suggest a strong confidence in AMH’s potential growth and stability, attracting further attention from investors.
AMH Reaffirms 2025 Guidance Despite 17% Decline YTD
Despite experiencing a 17% decline in its share price year-to-date, AMH maintains robust business fundamentals and has reaffirmed its guidance for 2025. The company anticipates a 4% growth in same-store net operating income (NOI) for 2025, underpinned by high resident retention and robust rental demand.
The robust rental demand is largely supported by the affordability challenges in homeownership, making rental properties an attractive option for many Americans. As such, this demand provides a solid foundation for AMH’s projected NOI growth, further strengthening its appeal to investors.
AMH’s Current Trading Status
Currently, AMH is trading at a low of $31 per share, marking its lowest valuation multiples since its initial public offering (IPO). The stock is trading with a 6.3% implied capitalization rate and a 15.7 times funds from operations (FFO) estimate for 2026. Despite these seemingly low numbers, the company’s solid fundamentals and optimistic growth projections provide a promising outlook.
With a market capitalization of approximately $11.59 billion, AMH continues to attract attention from investors. Today’s trading volume of 1,782,127 shares further supports this claim. As such, AMH remains a strong contender in the REIT sector and a potentially lucrative investment opportunity for those willing to invest in the rental housing market.