Houston, Texas-based Camden Property Trust (CPT) engages in the ownership, management, development, repositioning, redevelopment, acquisition, and construction of multifamily apartment communities. With a market cap of $11.2 billion, Camden operates as one of the major owners of apartments in the United States.
The real estate major has significantly underperformed the broader market over the past year. CPT stock has dropped 10.5% over the past 52 weeks and 7.8% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 19% surge over the past year and 10% returns in 2025.
Narrowing the focus, CPT has also underperformed the sector-focused Real Estate Select Sector SPDR Fund’s (XLRE) 1.2% dip over the past 52 weeks and 1.7% uptick in 2025.
Despite delivering better-than-expected results, Camden’s stock prices dipped 2.1% in the trading session following the release of its Q2 results on Jul. 31. The company’s property revenues for the quarter increased 2.4% year-over-year to $396.5 million, beating the consensus estimates by a thin margin. Meanwhile, the company’s cash flows remained under pressure, its core funds from operations (CFFO) decreased by a marginal 18 bps year-over-year to $187.6 million. However, its CFFO per share of $1.70 surpassed the Street estimates by 59 bps.
The drop in CPT stock prices can be attributed to the broader market downturn observed during the trading session, due to the chaos created by President Trump’s tariff announcements.
For the full fiscal 2025, ending in December, analysts expect Camden to report a CFFO per share of $6.80, down 73 bps year-over-year. On the positive note, the company has a solid CFFO surprise history. It has surpassed the Street’s CFFO projections in each of the past four quarters.
The stock maintains a consensus “Moderate Buy” rating overall. Of the 25 analysts covering the stock, opinions include eight “Strong Buys,” one “Moderate Buy,” 14 “Holds,” and two “Strong Sells.”
This configuration is slightly less optimistic than two months ago, when the stock had nine “Strong Buy” recommendations on it.
On Aug. 12, Evercore ISI Group analyst Steve Sakwa reiterated an “In-Line” rating on CPT and lowered the price target from $117 to $114.
As of writing, CPT’s mean price target of $126.81 suggests an 18.5% upside potential. Meanwhile, the street-high target of $142 represents a notable 32.7% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
