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- CFRA analyst Kenneth Leon upgraded Camden Property Trust (NYSE:CPT) to Buy from Hold on Thursday after the apartment REIT's stock had dropped 41% from its 52-week high.
- He expects CPT's portfolio in Sunbelt markets to outperform its peers.
- "We see moderate rental growth, stable occupancy, and better cost controls, but comps would get more challenging if we have a deep recession," Leon wrote. "One positive to rental rates for CPT is a decline in new supply coming in 2023-2024. We view CPT's strongest markets as Southeast Florida, Tampa, and Orlando for potential high-single-digit revenue growth."
- He also sees Camden Property Trust (CPT) benefiting from economies of scale, geographic diversification, and rental properties with a range of price points.
- 12-month price target stays at $126.
- Leon's Buy rating contrasts with the SA Quant rating of Hold, and aligns with the average Wall Street rating and average SA Author's rating, both at Buy.
- See why SA contributor David Ksir sees Camden Property Trust as a safe play.