UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Removes PT on American Homes 4 Rent Following Portfolio Acquisition

In a report published Wednesday, Morgan Stanley analyst Haendel E. St. Juste reiterated an Equal-Weight rating on

, but removed the $18.00 price target. In the report, Morgan Stanley noted, “MH made its first sizable portfolio acquisition by purchasing the 1,300 home Beazer Pre-Owned Rental Homes portfolio. The acquisition was completed via a tax-free merger in which Beazer received 8.2M shares of AMH stock ($146M at yesterday's close) & $5M cash in an indemnification escrow, and AMH repaid $112.8M that was outstanding under Beazer Rental Homes' credit agreement. This puts the total deal value at ~$264M. However, with limited financial information about the portfolio, valuation and yields are unknown.” American Homes 4 Rent closed on Tuesday at $17.75.