Invitation Homes Inc. (INVH), based in Dallas, is a leasing and management company for single-family homes. With a market cap of $19.5 billion, it responds to changing lifestyle preferences by providing access to high-quality, updated homes featuring a range of amenities.
The REIT has underperformed the broader market over the past year. INVH stock is down marginally over the past 52 weeks compared to the S&P 500 Index’s ($SPX) 31.1% gains over the same time frame. In 2024, INVH stock dropped 6.8%, lagging behind SPX’s 19.8% returns on a YTD basis.
Zooming in further, INVH has also trailed the Residential REIT ETF’s (HAUS) 26.6% returns over the past 52 weeks and 13.3% gains in 2024.
On Sept. 24, INVH shares dropped 2.6% following accusations from the U.S. Federal Trade Commission (FTC) that the company engaged in various misconducts, such as misleading customers about lease costs, failing to inspect homes before new tenants moved in, imposing “junk fees,” and unfairly withholding security deposits after tenants left.
For the current fiscal year, ending in December, analysts expect Invitation Homes' Funds from Operations (FFO) per share to grow 3.4% year over year to $1.83. The company has a history of exceeding the consensus FFO per share estimates in its quarterly reports.
Among the 22 analysts covering the INVH stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” and 11 “Holds.”
This configuration is slightly less bullish than two months ago, with ten analysts recommending a “Strong Buy.”
On Oct. 1, RBC Capital analyst Brad Heffern reiterated a “Hold” rating on Invitation Homes and set a price target of $36.
INVH's mean price target of $38.44 represents a premium of 20.9% to current price levels. The Street-high target of $43 indicates a potential upside of 35.3% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
