10 Cheap REITs with Huge Upside

9. AvalonBay Communities Inc. (NYSE:AVB)

AvalonBay Communities Inc. (NYSE:AVB) is one of the 10 cheap REITs with huge upside.

On March 4, Scotiabank reduced the firm’s price target on AvalonBay Communities Inc. (NYSE:AVB) from $193 to $190. The firm maintained its Sector Perform rating on the shares, which now offer a revised upside potential of over 12%.

The update comes as the firm revises its price targets across the U.S. multifamily REITs under its coverage. Scotiabank noted that many apartment markets continue to operate with occupancy levels below the pre-COVID period of 2015 to 2019. Investors may need to wait for the upcoming spring leasing season and clearer signs of improving market growth before a meaningful positive catalyst for the sector emerges.

On February 9, Piper Sandler decreased the firm’s price target for AvalonBay Communities Inc. (NYSE:AVB) from $190 to $183. The firm maintained a Neutral rating on the stock. It referred to recent earnings reports that indicate its inclination towards industrials while pulling back from the apartments sector. The outlook for later stems from deflated projections on rents.

AvalonBay Communities Inc. (NYSE:AVB) is a leading residential REIT that specializes in the development, acquisition, and management of the most sought-after apartment communities. Its primary focus is to provide an elevated residential experience to high-demand markets through skilled operational management and technological innovation.