TSX:HOM.DB.U - Post by User
Post by
retiredcfon Aug 16, 2023 7:49am
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Post# 35590489
Scotiabank
Scotiabank Scotia’s Himanshu Gupta trimmed his BSR REIT target to US$17 from US$18 with a “sector outperform” rating. The average is US$17.54.
“Based on our model, SS NOI and FFOPU growth should bottom out in Q4/23 and then show decent growth in 2024,” he said. “While valuation has mostly re-set, market attention is still fixated (rightly or wrongly) on the pace of rent deceleration. With elevated bond yields (US10YR more than 4 per cent), there is some hesitation for market to own deceleration stories right now. We think, by Super Bowl (say around Feb’23), we will begin to see an inflection point with respect to both organic growth and earnings. This is when we think unit price should resume its upward journey. Apart from easy comps, we also see real estate taxes reduction in Texas as a positive catalyst.”