A bunch of Analyst upgrades A group of equity analysts raised their target prices for shares of Tricon Residential Inc. (TCN-T) following Monday’s announcement of a US$5-billion joint venture arrangement (SFR JV-2) with three institutional investors to acquire over 18,0000 single-family rental homes targeting the middle-market demographic in the U.S. Sun Belt.
BMO Nesbitt Burns’ Stephen MacLeod said the Toronto-based company “remains well positioned for growth.”
“The announcement of Tricon’s SFR JV-2 at 2.5 times the size of SFR JV-1 demonstrates robust institutional demand for investing in SFR homes in the U.S. Sun Belt; a larger deal size enhances the scale and efficiency of Tricon’s SFR operating platform,” he said.
Maintaining an “outperform” rating, Mr. MacLeod raised his target to $16 from $15.50. The current average is $16.06.
Others making changes include:
* Canaccord Genuity’s Mark Rothschild to $15.75 from $14.25 with a “buy” rating.
“Considering the company’s significant near-term opportunities to grow cash flow, particularly from investing additional third-party capital, we believe the current valuation is attractive. As management continues to successfully execute on its business plan, the relative valuation should improve,” said Mr. Rothschild.
* Stifel’s Cihan Tuncay to $18 from $16.30 with a “buy” rating.