Buy Rating Affirmed: Invitation Homes Prevails in Legal Settlements, Clearing Path for Growth

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Analyst Adam Kramer of Morgan Stanley maintained a Buy rating on Invitation Homes (INVHResearch Report), retaining the price target of $39.00.

Adam Kramer has given his Buy rating due to a combination of factors concerning Invitation Homes’s recent legal settlements and their anticipated impact on the company’s operations. The resolution of a civil investigation by the Federal Trade Commission (FTC), with a settlement well-aligned with management’s previous estimates, has been deemed a positive development. Kramer believes that the additional operational requirements imposed on Invitation Homes as part of the settlement are unlikely to materially affect the company’s business, as they largely reflect existing laws and standard business practices.

Moreover, with the FTC inquiry and a separate qui tam complaint now settled, Kramer sees the removal of previous uncertainties that may have been affecting the company’s stock valuation. The shift in focus towards the company’s fundamentals is expected to be beneficial, despite the observation that Invitation Homes’s new lease growth is currently trailing behind that of its peer, American Homes 4 Rent (AMH). Overall, Kramer’s outlook is optimistic, as the settlements allow for clearer future business operations and potential growth, outweighing concerns about the company’s current leasing performance.

According to TipRanks, Kramer is a 3-star analyst with an average return of 3.6% and a 66.67% success rate. Kramer covers the Real Estate sector, focusing on stocks such as Mid-America Apartment, Invitation Homes, and Equity Residential.

In another report released on September 16, Evercore ISI also maintained a Buy rating on the stock with a $38.00 price target.

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Invitation Homes (INVH) Company Description:

Invitation Homes, Inc. engages in the acquisition, renovation, leasing and operating single-family homes as rental properties, including single-family homes in planned unit developments. Its services include property management, selection of homes, maintenance program, and online payment. The company was founded by Marcus Ridgway, Dallas Tanner, and Brad Greiwe in 2012 and is headquartered in Dallas, TX.