BofA Analyst Doubles Down On Veris Residential Growth, Downgrades Sun Communities – Here’s Why
BofA Securities analyst Joshua Dennerlein revised ratings on residential REITs, Veris Residential, Inc. (NYSE:VRE) and Sun Communities, Inc. (NYSE:SUI).
VRE: The analyst upgraded the company to Buy from Neutral and raised the price target to $23 from $20.
The analyst notes that the market is undervaluing VRE’s internal growth potential and its ability to successfully execute optimization initiatives.
The analyst says that VRE is excelling in its key initiatives: capital allocation, portfolio optimization, and balance sheet management.
The analyst sees the greatest upside from capital recycling to reduce leverage, a strategy that distinguishes VRE in the Residential REIT sector.
The analyst raised the 2025 FFO estimate to $0.65 (from $0.59) and 2026 FFO estimate to $0.71 (from $0.63). Dennerlein forecasts SS NOI growth of 5.9% in 2025, significantly higher than the Street’s 2.36%.
Given VRE’s apartment …
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