- Piper Sandler analyst Alexander Goldfarb upgrades Equity Residential (NYSE:EQR) to Neutral from Underweight as the apartment REIT repositions itself to lessen its reliance on bi-coastal markets.
- Notes that Q1 results show that renters are returning, but San Francisco and NYC markets continue to lag.
- "California and NYC seem ripe for sales, with Denver and entry into new markets the recipients," Goldfarb writes in a note to clients.
- He "wouldn't be surprised" to see the REIT return to Texas, Florida, and Arizona markets and enter some new markets, perhaps Nashville.
- Goldfarb's current rating lines up with the Neutral Quant rating and with the average Wall Street rating (5 Very Bullish, 13 Neutral, 4 Bearish, 1 Very Bearish).
- Previously (April 27), Equity Residential boosts lower end of 2021 FFO guidance as occupancy improves.