Houston, Texas-based Camden Property Trust (CPT) is a real estate company that primarily owns, manages, develops, redevelops, acquires, and constructs multifamily apartment communities. Valued at a market cap of $12.4 billion, the company focuses on high-growth markets, including cities in the Sunbelt region such as Austin, Dallas, Tampa, Phoenix, and Charlotte.
This residential REIT has lagged behind the broader market over the past 52 weeks. Shares of CPT have gained 8.3% over this time frame, while the broader S&P 500 Index ($SPX) has surged 12.3%. Moreover, on a YTD basis, the stock is down marginally, compared to SPX’s slight uptick.
Nevertheless, narrowing the focus, CPT has outpaced the Residential REIT ETF’s (HAUS) 4.5% rise over the past 52 weeks and 4.1% fall on a YTD basis.
On May 1, CPT delivered better-than-expected Q1 results, prompting its share price to rise 5.3% in the following trading session. The company’s revenue grew 1.9% year-over-year to $390.6 million and topped the consensus estimates by a slight margin. Moreover, its core FFO of $1.72 improved 1.2% from the year-ago quarter and came in 2.4% above Wall Street estimates. Additionally, its same property communities NOI of $243.4 million marginally grew from the same quarter last year, while its adjusted EBITDAre advanced 1.5% year-over-year to $227.3 million.
The company also raised its fiscal 2025 core FFO and EPS guidance, which might have further bolstered investor confidence. It now expects core FFO to be between $6.63 and $6.93 per share, and EPS in the range of $1.01 to $1.31.
For the current fiscal year, ending in December, analysts expect CPT’s FFO to decline 1% year over year to $6.78 per share. The company’s FFO surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 26 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on nine “Strong Buy,” one “Moderate Buy,” 14 “Hold,” and two “Strong Sell” ratings.
This configuration is slightly more bullish than two months ago, with eight analysts suggesting a “Strong Buy” rating.
On May 12, The Bank of Nova Scotia (BNS) maintained a “Sector Perform” rating on CPT and raised its price target to $144, the Street-high price target, which indicates a 24.4% potential upside from the current levels.
The mean price target of $130.03 represents a 12.3% upside potential from CPT’s current price levels.
