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Research Alert: CFRA Keeps Hold Opinion On Shares Of American Homes 4 Rent
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Research Alert: CFRA Keeps Hold Opinion On Shares Of American Homes 4 Rent
Oct 31, 2025 5:28 AM

08:05 AM EDT, 10/31/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target by $2 to $34, applying a narrower equity risk premium and a forward P/FFO of 17.4x, still a premium to peers in the single-family homes for rent (SFHR) market. The premium is supported by the attractive rental communities that AMH holds in above-average demographic and employment markets. However, the SFHR business is slowing down, illustrated by AMH and peers shifting to selling older single-family homes and buying or developing fewer new homes in target markets. We think affordability is having a direct impact on demand and is shown in slower average monthly rental rates. Thus, we keep our FFO estimates at $1.85 in 2025 and $1.95 in 2026, both near consensus estimates. We do like the stock profile that offers an above market dividend yield at 3.8% and a stock beta of 0.75 below the market to gauge share price volatility. Financial condition and liquidity are strong to meet debt payments. AMH generated $49M of retained cash flow and sold 395 properties for $125M of net proceeds.

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