Research Alert: CFRA Lowers Opinion On Shares Of Invitation Homes Inc. To Sell From Hold
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target by $2 to $27, using a forward P/FFO of 13.5x our 2027 FFO estimate, which compares with the peer group average in the mid-to-high teens given our more bearish view on INVH's growth outlook. We keep our FFO estimate for 2026 at $1.93 and 2027's at $2.00 on projected revenue of $2.84B and $2.85B, respectively. Even though shares offer a 4.1% dividend yield, we do not see any top-line growth or EBITDA estimated to grow 1%-2% Y/Y in 2027. Our Sell rating is based on our fundamental outlook and does not factor in additional risks of stricter regulation or legislation from Congress of the single-family-homes-for-rent (SFHR) industry. We think there will be a continued revaluation of INVH and peers like American 4 Rent (AMH 32 **) as rental price power wanes, operating costs rise, and a higher cost of living and weaker U.S. economy hurt rental affordability for households. We think INVH has ample liquidity to meet its debt obligations, working capital, and construction expenditures.