Headquartered in Houston, Texas, Camden Property Trust (CPT) is a real estate investment trust (REIT) specializing in the ownership, development, and management of high-quality apartment communities. With a market cap of $12.8 billion, Camden serves residents across major U.S. markets, leveraging its extensive portfolio and commitment to delivering exceptional living experiences.
Shares of Camden Property have outperformed the broader market over the past year. The stock has gained 38.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. However, in 2024, CPT stock is up 22.2%, while the SPX is up 24.1% on a YTD basis.
Zooming in further, CPT has outperformed the Real Estate Select Sector SPDR Fund (XLRE). The exchange-traded fund has gained about 21.1% over the past year and 8.7% on a YTD basis.
CPT stock has outperformed the broader due to strong demand for rental properties and a focus on high-growth markets. Additionally, the company's strategic investments in technology and sustainable practices have also contributed to its success in the real estate sector.
However, the stock fell 1.8% following its Q3 earnings release on Oct. 31. Funds from Operations (FFO) came in at $1.71 per share, exceeding the analyst expectation of $1.68, marking a positive surprise of 1.79%. However, the company reported revenues of $387.2 million, which missed Wall Street's consensus estimate and represented a 0.9% decline year-over-year.
For the current fiscal year, ending in December, analysts expect CPT’s EPS to decline marginally to $6.78 on a diluted basis. The company’s earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 25 analysts covering CPT stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” 17 “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago when seven analysts suggested a "Strong Buy."
On Nov. 14, Scotiabank lowered CPT’s price target to $130 from $132 while maintaining a “Sector Perform” rating. The firm highlights strong rental demand that is expected to continue through 2025 due to challenges with the affordability of homeownership and stable employment growth.
The mean price target of $127.09 represents a 4.8% premium to CPT’s current price levels. The Street-high price target of $142 suggests an upside potential of 17.1%.
