Morgan Stanley Says Apartment REIT Pullback Creates Opportunity, Raises MAA Target

Mid-America Apartment Communities, Inc. (NYSE:MAA) is included among the 10 Best Dividend Stocks to Buy for Passive Income.

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On June 25, Morgan Stanley raised its price recommendation on Mid-America Apartment Communities, Inc. (NYSE:MAA) to $155 from $150. It reiterated an Overweight rating on the shares. Analyst Adam Kramer said apartment REITs “started to work, but the rally faded.” He believes “the setup is even better than pre-rally” following the recent pullback.

Earlier, on June 18, Scotiabank raised its price goal on MAA to $129 from $120. It maintained an Underperform rating on the stock. Analyst Nicholas Yulico said real estate investment trust valuations have become less attractive after the sector’s strong start to the year. Scotiabank adjusted its subsector positioning based on its “relative valuation-versus-growth framework.” The firm remains most positive on seniors housing and upgraded its outlook on self-storage and net lease to Overweight from Marketweight. It also lowered its views on industrial and shopping centers to Marketweight from Overweight, citing relative valuations.

Mid-America Apartment Communities, Inc. (NYSE:MAA) is a multifamily-focused, self-administered, and self-managed real estate investment trust. The company owns, operates, acquires, and selectively develops apartment communities, primarily across the Southeast, Southwest, and Mid-Atlantic regions of the United States.

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