On Tuesday, JMP Securities adjusted its outlook on American Homes 4 Rent (NYSE:AMH), raising the price target to $41.00 from the previous $38.00. The firm maintained its Market Outperform rating on the stock.
The adjustment follows the company's fourth quarter 2023 earnings report, which revealed a core Funds From Operations (FFO) per share of $0.43, surpassing both JMP Securities' and consensus estimates of $0.41 and $0.42, respectively.
The reported earnings outperformance is attributed to a higher Net Operating Income (NOI), which benefited from a 110 basis points margin outperformance. In response to the results, JMP Securities reiterated their positive rating and increased their price target based on a higher forward twelve-month Net Asset Value (NAV) at a constant 5.25% capitalization rate.
American Homes 4 Rent also provided initial guidance for the 2024 core FFO, setting the midpoint at $1.73 per share. This figure is slightly below JMP Securities' earlier estimate of $1.75 per share. The difference is attributed to factors related to the company's capital structure. In January, the company took a proactive approach to its financial management by issuing $600 million in bonds, which covers approximately two-thirds of the $939 million in debt maturing in the second half of 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.