Keefe, Bruyette & Woods Reiterates Outperform, Reduces Price Target On American Homes 4 Rent On 4Q Wrap-Up

In a report published Monday, Keefe, Bruyette & Woods analyst Jade J. Rahmani reiterated an Outperform rating on American Homes 4 Rent AMH, but reduced the price target from $21.00 to $20.00. In the report, Keefe, Bruyette & Woods noted, "Core FFO was $0.01 below our forecast on a mix of factors. Core NOI of 62.1% exceeded our 61.8% and management revised its NOI target to 61-63% from 61-62%. The company cited several initiatives to improve operating efficiency. We reduce our near-term estimates by approximately $0.01-$0.02 per quarter on slightly lower acquisitions and to incorporate the company's 1Q fixed-rate securitization. We reduce our price target to $20 (from $21), as a result. We believe AMH remains well positioned to take advantage of opportunities in the sector, including consolidation and securitization. Maintain Outperform." American Homes 4 Rent closed on Friday at $16.69.