FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Maintains Sell Rating On Shares Of Mid-america Apartment Communities, Inc.

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target price by $6 to $119, recognizing weakness in MAA's key rental markets and a forward P/FFO of 14.0x compared to the multifamily residential REIT average at 15.5x. We raise our FFO estimate in 2026 by $0.15 to $8.50 and lower 2027 by $0.10 to $8.70 per share on total rental revenue of $2.2B and $2.3B, respectively. We have a more cautious FFO outlook for 2027 on our view that raising rents on new leases will be challenging, as it has been in 2026. MAA's geographic footprint in mostly Sun Belt markets faces new supply that has put downward pressure on monthly lease rates and sparked the need for incentives on new tenant leases to meet absorption and reduce vacancies. We do not think the U.S. economy and employment trends are likely to be a catalyst for higher monthly rental rates or revenue. Some of MAA's major Sun Belt markets realized cash NOI declines, like Denver (-13% Y/Y) and Austin, TX (-9% Y/Y), with weakness in other local markets. Dividend yield is 4.7%, which we think is secure.

Related Articles

Research

Research Alert: CFRA Keeps Hold Opinion On Shares Of Vlto

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We adjust our target price to $100 from $115 following Q1 results, valuing shares at 22x our unchanged 2027 EPS outlook of $4.53, near peers' three-year historical forward P/E average. We lift our 2026 EPS view to $4.20 from $4.15. VLTO delivered a solid Q1 beat, with operating EPS of $1.07 rising 12.6% Y/Y and surpassing consensus of $1.01, while core sales grew roughly 2% Y/Y, led by stronger Water Quality revenues (up 4%) offsetting a 1% decline in Product Quality and Innovation. China remained a mixed bag, with divergent performance across segments. Operating margins expanded modestly, rising 10 bps to 25.1%, reflecting bottom-line improvements despite mixed sales performance. FCF was up 19.7%, supporting approximately $1B in capital deployment during the quarter, including $620M for the acquisitions of In-Situ and GlobalVision and $300M in share repurchases. VLTO also initiated a cost optimization program expected to generate annual savings of $65M to $75M by 2028.

$VLTO
Research

Research Alert: CFRA Maintains Hold Rating On Fair Isaac Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our target price of $1,219, applying 26x our FY 27 (Sep.) EPS estimate, with the compressed multiple reflecting regulatory uncertainty following the FHFA's decision allowing VantageScore in conforming mortgages, introducing the first meaningful competition to FICO's long-standing monopoly. Our EPS estimates are $41.08 for FY 26 (up from $38.48) and $46.90 in FY 27. We maintain our Hold rating while awaiting greater clarity on competitive dynamics and adoption trends for FICO's Mortgage Direct licensing program, with lender uptake remaining uncertain and management's dismissal of competitive threats contrasting with defensive pricing actions. While the company continues demonstrating strong near-term performance and aggressive capital returns through share repurchases, the regulatory landscape has fundamentally shifted in ways that warrant caution. FICO's Platform software momentum, expanding operating leverage, and switching costs offer enough upside to balance the recent industry changes.

$FICO
Research

Research Alert: CFRA Keeps Buy Opinion On Shares Of Cincinnati Financial Corp.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our 12-month target price by $7 to $185, valuing CINF shares (currently yielding 2%) at 20x our 2027 operating EPS estimate of $9.15 (raised by $0.10) and at 21.5x our 2026 EPS estimate of $8.60 (raised by $0.10), versus its five-year average forward multiple of 21x and peer average. CINF posted Q1 operating EPS of $2.10 versus a $0.24 operating loss per share a year ago, matching our estimate and topping the $1.94 consensus view, amid 12% higher operating revenues due to 11% premium growth and 14% higher net investment income, with written premium growth of 7% likely at the upper end of peer averages. We believe CINF's competitive strengths include its facile underwriting style and ability to allocate underwriting capital to areas with the most promising fundamentals, positioning it well despite increasingly competitive market conditions. CINF's ability to consistently produce above-peer growth and underwriting profitability will support the shares' premium valuation versus peers, in our view.

$CINF