What Makes American Homes 4 Rent (AMH) Attractive

American Homes 4 Rent (NYSE:AMH) is one of the most favored real estate investment trusts according to Hedge Funds.

On December 15, Jade Rahmani from Keefe Bruyette upgraded his stance on American Homes 4 Rent (NYSE:AMH). The analyst revised his rating from Market Perform to Outperform, estimating a price target of $37. This now leads to an upside of above 14% at the prevailing range.

Keefe Bruyette presented its 2026 outlook for the real estate market, anticipating favorable prospects for commercial real estate. The firm sees the commercial real estate cycle entering into a “more secure recovery phase with moderate yet still healthy growth” during 2026. This bodes well for high-quality assets that are expected to deliver attractive returns.

Juan Sanabria from BMO Capital downgraded his rating for American Homes 4 Rent (NYSE:AMH) from Outperform to Market Perform. He set a price target of $37, which still yields an upside of more than 14%.

Sanabria attributed this downward revision to President Trump’s recent proposal to ban institutional investors from investing in single-family homes. This poses a threat to single-family residential REITs, which would struggle to grow in the absence of large financial injections from institutions.

American Homes 4 Rent (NYSE:AMH) is a large-scale operator of single-family rental homes. The company is involved in acquiring, developing, renovating, and leasing these properties within the United States. For tenant convenience, they also manage an online platform for rent payments and account management.

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Disclosure: None. This article is originally published at Insider Monkey.