UDR: Truist Securities Downgrades Hold Rating, PT to $43 from $46.

UDR: Truist Securities Downgrades Hold Rating, PT to $43 from $46.

Truist Securities has recently reduced its price target on United Dominion Realty Trust, Inc. (NYSE: UDR) from $46.00 to $43.00 while maintaining a Hold rating on the multifamily real estate investment trust. The stock is currently trading at $38.83, with the new price target implying two turns of funds from operations (FFO) multiple expansion [1].

The downgrade reflects UDR’s diversified multifamily portfolio positioning amidst changing market conditions. The firm cited a slowing pace of new supply in Sunbelt markets and a low supply in coastal regions. UDR's defensive beta of 0.84 and a 4.39% dividend yield make it an attractive investment, especially with national job growth decelerating [1].

Truist's FFO estimates for UDR remain largely unchanged, with its 2025 projection positioned at the lower end of management’s guidance range. The company maintains modest revenue growth of 2.38% and a FAIR financial health score, indicating a stable financial performance [1].

Despite the positive outlook, Truist prefers several other apartment REITs over UDR at current pricing levels. The recent Q2 2025 earnings report from UDR demonstrated strong financial performance, exceeding high-end guidance for funds from operations as adjusted (FFOA) per share and raising full-year 2025 guidance [1].

Additionally, United Dominion Realty Trust Inc. has seen significant transition with the retirement and resignation of Clint D. McDonnough from its board of directors, effective July 31. The board size has been reduced from nine to eight members [1].

References:
[1] https://www.investing.com/news/analyst-ratings/udr-stock-price-target-lowered-to-43-from-46-at-truist-securities-93CH-4209402