Analysts’ Opinions Are Mixed on These Financial Stocks: Brookfield Asset Mng. (NYSE: BAM) and AvalonBay (NYSE: AVB)

By Ryan Adsit

Analysts have been eager to weigh in on the Financial sector with new ratings on Brookfield Asset Mng. (NYSE: BAM) and AvalonBay (NYSE: AVB).

Brookfield Asset Mng. (NYSE: BAM)

Canaccord Genuity analyst Mark Rothschild reiterated a Buy rating on Brookfield Asset Mng. (NYSE: BAM) yesterday and set a price target of $40. The company’s shares closed last Friday at $32.68.

According to TipRanks.com, Rothschild is a 2-star analyst with an average return of 0.4% and a 43.8% success rate. Rothschild covers the Financial sector, focusing on stocks such as Brookfield Property Partners, Glimcher Realty Trust, and Essex Property Trust .

Currently, the analyst consensus on Brookfield Asset Mng. is Moderate Buy and the average price target is $42, representing a 28.5% upside.

In a report issued on November 11, BMO Capital also reiterated a Buy rating on the stock with a $42 price target.
AvalonBay (NYSE: AVB)

UBS analyst Nicholas Yulico reiterated a Hold rating on AvalonBay (NYSE: AVB) on November 11 and set a price target of $175. The company’s shares closed last Friday at $167.66.

Yulico observed:

“We toured AVB’s new development: AVA Dobro / Avalon Willoughby Multifamily supply will continue to be elevated in Brooklyn, but we came away from the tour feeling AVB is in a good position to weather the storm. AVB’s newest Brooklyn project totals 826 units w/ a construction cost of $456.3 million. 500 units fall under the AVA brand; remaining 326 units are higher-end Avalon. As the project had initial occupancy in Oct. 2015, the first renewals are starting to kick in: AVB is not pushing rents, rather focusing on occupancy and achieving stabilization. Net effective rents at $60/sf are above underwriting of $55/sf, and we estimate the yield is trending at 5.5%.”

According to TipRanks.com, Yulico is a 1-star analyst with an average return of -3.4% and a 35.7% success rate. Yulico covers the Financial sector, focusing on stocks such as Senior Housing Properties Trust, National Retail Properties, and General Growth Properties.

AvalonBay has an analyst consensus of Moderate Buy, with a price target consensus of $195.50.