This morning's G&M RBC Dominion Securities analyst Brad Heffern raised the firm’s target for Tricon Residential Inc. (
,
) to US$16 from US$15.50, maintaining an “outperform” rating, upon assuming coverage of the stock. The average is $17.38 (Canadian).
“We think TCN adds a unique strategy to the U.S. [single-family rental] market, and the company’s focus on middle-market homes has generated stronger rent growth and lower turnover than peers,” he said. “Acquisition pace has also led the group. The price of the higher growth is additional complexity and higher leverage, but non-SFR businesses will likely be exited over time and we are comfortable with higher leverage in the SFR business.”