Citi Maintains Hold Rating on UDR with $42 Price Target

Citi has maintained a Hold rating on UDR with a $42.00 price target. The company reported a quarterly revenue of $425.4 million and a net profit of $37.67 million. Analyst consensus suggests a Moderate Buy rating with a $44.54 average price target, implying a 17.00% upside from current levels.

United Dominion Realty Trust, Inc. (UDR) continues to face challenges in the real estate market, with its stock prices underperforming the broader market and industry benchmarks. Despite these setbacks, analysts remain cautiously optimistic about the company's prospects, predicting a potential climb in its stock price.

UDR, a leading multifamily real estate investment trust (REIT), has seen its stock price fall 10.4% over the past 52 weeks, significantly lagging behind the broader market's 19.3% gains [1]. The company's market cap stands at $12.6 billion, and it operates as one of the most favorably-positioned multi-family apartment REITs in the U.S. [1].

In its second quarter (Q2) 2025 earnings report, UDR reported better-than-expected results, with total revenues increasing 2.4% year-over-year to $425.4 million, and adjusted funds from operations (AFFO) per share rising 3.2% to $0.64 [2]. However, the company's stock price dipped 1.3% in the trading session following the release, reflecting investors' concerns over the company's reduced full-year earnings and FFO guidance [1].

Analysts expect UDR to deliver an AFFO per share of $2.51 for the current fiscal 2025, up 1.2% year-over-year [1]. The stock has a consensus "Moderate Buy" rating overall, with opinions including nine "Strong Buys," 13 "Holds," and one "Strong Sell" rating among the 23 analysts covering the stock [1]. Steve Sakwa, an analyst at Evercore ISI Group, maintained an "Outperform" rating on UDR but lowered the price target from $46 to $45 [1].

Mitsubishi UFJ Asset Management Co. Ltd. recently increased its stake in UDR by 1.6%, acquiring 11,082 additional shares and bringing its total ownership to approximately 0.22% of the company [2]. Other institutional investors have also shown interest in UDR, with Capital Research Global Investors, Northern Trust Corp, Universal Beteiligungs und Servicegesellschaft mbH, Waterfront Capital Partners LLC, and Deutsche Bank AG increasing their stakes in the company [2].

Citi has maintained a Hold rating on UDR with a $42.00 price target [3]. The company reported a quarterly revenue of $425.4 million and a net profit of $37.67 million [3]. Analyst consensus suggests a Moderate Buy rating with a $44.54 average price target, implying a 17.00% upside from current levels [3].

In conclusion, while UDR has underperformed the broader market over the past year, analysts remain bullish on the company's prospects. The combination of strong fundamentals, positive earnings reports, and increasing institutional ownership suggests that UDR's stock price may climb in the coming months. Investors should closely monitor UDR's financial performance and analyst ratings to make informed investment decisions.

References:
[1] https://finance.yahoo.com/news/wall-street-analysts-predicting-udr-075406007.html
[2] https://www.ainvest.com/news/udr-stock-forecast-analysts-predict-rise-decline-2508/
[3] https://www.investing.com/news/company-news/udr-q2-2025-slides-exceeds-guidance-raises-fullyear-outlook-amid-regional-variations-93CH-4194785