Barclays Analyst is Bullish on AvalonBay Communities (AVB)

AvalonBay Communities, Inc. (NYSE:AVB) is one of the best dividend stocks in the real estate sector. On November 25, Barclays analyst Richard Hightower remained bullish on AvalonBay, assigning a Buy rating on the stock with an accompanying price target of $216.

In a separate update, S&P Global updated its stance on AvalonBay from stable to positive on November 4. The rating agency anticipates that AVB’s operational track record will be consistent, given the solid demand for its suburban coastal assets and strong tenant demand. Q3’s increase in same-store residential revenue and net operating income was supported by a near-full occupancy at 95.7%, in addition to stable tenancy. S&P also observed that tenancy remains more affordable than homeownership in the current economy, which is beneficial for AVB.

The positive outlook indicates that S&P anticipates robust occupancy and stable rent growth for the next two years, since AVB’s properties are located in good areas. The firm also expects AVB to finance its projects in a way that credit protection measures do not escalate from present levels despite the expansion of its portfolio.

AvalonBay Communities, Inc. (NYSE:AVB) builds, acquires, and manages apartment communities in major American cities and some growing markets.

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