UPDATE: Bank of America Initiates Coverage on American Homes 4 Rent, Awaiting Financing Clarity

In a report published Monday, Bank of America analyst Jana Galan initiated coverage on

with a Neutral rating and $18.00 price target. In the report, Bank of America noted, “We initiate coverage on American Homes 4 Rent (AMH) with a Neutral rating and $18 price objective. AMH is the third single-family rental (SFR) REIT to go public and second largest platform in size after Blackstone, with a portfolio of 19,825 homes (July 31). AMH priced its IPO on 7/31/13 at $16.00, generating $848.3M of net proceeds. Proceeds were used to repay AMH's line of credit and acquire single-family rental homes. In our view, industry trends are favorable for home price appreciation, and niche demand for rentals exists. However, uncertainty about future funding and valuation keeps us at a Neutral rating.” American Homes 4 Rent closed on Friday at $16.02.