Houston, Texas-based Camden Property Trust (CPT) owns, manages, develops, repositions, redevelops, acquires, and constructs multifamily apartment communities. Valued at $12.7 billion by market cap, it owns and operates 172 properties containing 58,250 apartment homes across the U.S.
Shares of this leading apartment REIT have underperformed the broader market over the past year. CPT has gained 12.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.3%. However, things are looking up for the stock in 2024. CPT stock is up 20.3%, surpassing SPX’s 17.6% rise on a YTD basis.
Narrowing the focus, CPT has also lagged behind the Residential REIT ETF (HAUS). The exchange-traded fund has gained about 23.7% over the past year. However, CPT’s gains on a YTD basis outshine the ETF’s 15.4% returns over the same time frame.
On Aug. 1, CPT announced its Q2 results, and its shares rose by 3.9%. Its core funds from operations of $1.71 topped Wall Street expectations of $1.67, and its revenue was $387.2 million, exceeding Wall Street forecasts of $384.8 million. For Q3, CPT expects its core funds from operations to be between $1.66 and $1.70. It expects its full-year core funds from operations to be between $6.74 and $6.84.
For the current fiscal year, ending in December, analysts expect CPT’s EPS to decline marginally to $6.76 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 23 analysts covering CPT stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, two “Moderate Buys,” 12 “Holds,” and one “Strong Sell.”
This configuration is more bullish than a month ago, with seven analysts suggesting a “Strong Buy.”
On Aug. 15, Morgan Stanley (MS) analyst Adam Kramer maintained a “Hold” rating on CPT with a price target of $117, implying a potential downside of 2% from current levels.
While CPT currently trades above its mean price target of $115.28, the Street-high price target of $147 suggests an upside potential of 23.1%.
On the date of publication, Neha Panjwani 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.
