UPDATE: Goldman Sachs Initiates Coverage on American Homes 4 Rent with Neutral Rating, $18 PT on Valuation

In a report published Monday, Goldman Sachs analyst Andrew Rosivach initiated coverage on

with a Neutral rating and $18.00 price target. In the report, Goldman Sachs noted, “We initiate coverage of American Homes 4 Rent (AMH) with a Neutral rating and a 12-month price target of $18 (12% total return including dividends). Our price target is the sum of (1) a downside case of $15 (10% probability), in which additional properties are not acquired, (2) a base case of $16 (50% probability) assuming moderating acquisitions through 2015, and (3) an upside case of $21 (40% probability) if AMH consolidates $3 billion of acquisitions per year through 2015. Also, we believe AMH's potential to be a market-leading consolidator in single family rentals has been reflected in the current share price; hence our Neutral rating.” American Homes 4 Rent closed on Friday at $16.02.