real-time news and commentary for investors
Monday, Aug 26
Sell side weighs in on American Homes 4 Rent
- With the post-IPO quiet period over, the ratings and analyst comments roll in on American Home 4 Rent (AMH -0.2%).
- FBR Capital initiates with a Buy and $19 price target, with analyst Steve Stelmach believing the company offers the most effective single-family opportunity thanks to its scale and structure (internally managed). "At worst, AMH is a portfolio of assets with a cost basis below replacement costs and below NAV ... (and) management and shareholder interests are aligned."
- Wells Fargo initiates with a Hold, believing the company can continue to acquire homes accretively and at below market prices (they make it sound so easy). "However, we believe uncertainties remain in this relatively new market."
- Also rating the company a Buy is JPMorgan.
- Credit Suisse and Bank of America add their names to the Hold contingent.
- Previous: AMH cuts 15% of staff and will slow acquisition activity.
- Interested onlookers will be shareholders of SBY, ARPI, and BX, not to mention Colony Capital (CLNY), which postponed its IPO of Colony American Homes (CAHS) this summer.