-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target by $3 to $69 per share, applying a wider equity risk premium and a forward P/FFO of 16.8x, a premium to the multifamily residential REIT average at 15.5x given EQR's premium urban, coastal markets that face less new supply in the trust's local markets. We keep our 2026 FFO estimate at $4.10 and 2027's at $4.25 on unchanged revenue forecasts of $3.2B and $3.3B. EQR and its peers have underperformed the S&P 500 given the group's defensive characteristics and slower but steady growth profile. EQR's stock beta is 0.74, indicating slightly less price volatility than the equity market. The shares offer an attractive 4.3% dividend yield, well above the S&P 500, which is below 2.0%. Our cautious view on EQR is tied to lower expectations on rental rate increases and higher operating expenses. Even in EQR's coastal markets, we are seeing the impact of weak new job growth in technology and entertainment on new tenant leases. This supports a moderating outlook for this real estate asset class.