RBC Capital Cuts Price Target On This REIT By 4%

May 18, 2022 2:07 PM | 1 min read | Make a Comment

RBC Capital analyst Jimmy Shan has reduced the Canadian Apartment Properties REIT CAR CDPYF price target to C$66 from C$69.
The analyst maintained the Outperform rating on the shares.
Shan remarked that 1Q22 reflected a difficult winter but an increasing revenue forecast, which the second half should better reflect. Given the current valuation, NCIB is being considered with asset sales, the analyst noted.
According to the analyst, the valuation is tricky—a glass-half-full investor considers the inflationary impact on replacement costs and rents, while a glass-half-empty investor considers the negative/thin investment spread impact on cap rates.
Price Action: CAR.UN shares are trading higher by 0.27% at C$47.84 on TSX on the last check Wednesday.