Invitation Homes Surges on Another Positive Analyst Move

Invitation Homes Inc. (INVH:US) shares are trading sharply higher this week following an upgrade by analysts at the U.S.-based research firm Evercore ISI. 

The company's stock rating has been upgraded from "in line" to "outperform" with the analysts citing improved supply and demand trends and the recent pullback in shares as reasons for the upgrade.

The rating upgrade comes after the stock lost 12% in the last 3 weeks. According to analysts at Evercore ISI, the focus for investors should be on blended rent growth and occupancy trends, as well as whether apartment NOI (Net Operating Income) growth remains positive in the second half of 2024.

Analysts see better supply and demand trends in the single-family rental market, which is positive for Invitation Homes. Their price target for Invitation Homes stock is maintained at $37, and with the Q3 pullback in the stock, this upgrade provides a projected return of more than 20%. 

Late last month, UBS analysts started their research coverage at “buy” with a $38 stock price target.

Year-to-date, INVH has seen a 6.9% increase through Tuesday’s close.

Congress members Daniel Goldman and Ro Khanna were trading shares this year. Most notably, Rep. Goldman sold $15,000 - $50,000 worth of INVH shares back in July when they were trading around the $35 mark, similarly to levels observed on Wednesday.