Analysts Have Conflicting Sentiments on These Financial Companies: Preferred Apartment Communities (NYSEArca: APTS) and Education Realty Trust (NYSE: EDR)

By Austin Angelo

Analysts have been eager to weigh in on the Financial sector with new ratings on Preferred Apartment Communities (NYSEArca: APTS) and Education Realty Trust (NYSE: EDR).

Preferred Apartment Communities (NYSEArca: APTS)

Canaccord Genuity analyst Michael Kodesch reiterated a Buy rating on Preferred Apartment Communities (NYSEArca: APTS) today and set a price target of $17. The company’s shares opened today at $17.27, close to its 52-week high of $17.40.

Kodesch said:

“We continue to reiterate that earnings results are not as key to driving this stock as external growth. 2Q transaction activity: 2Q financial results have considerable noise, including: (4/3) Acquired a 247-unit MF in Williamsburg, VA via the mezz loan program. (4/20) Closed on a loan investment to acquire land in San Jose, CA (4/24) Acquired an 80k sf grocery anchored shopping center in Atlanta, GA (4/27) Acquired a 242-unit MF community in Louisville, KY (5/26) Sold the MF community Enclave at Vista Ridge in Dallas, TX for $44M. (6/6) Acquired a grocery anchored shopping center in Atlanta, GA Subsequent activity: Subsequent to quarter end: (7/12) Closed on a loan for $22.5M for a 356-unit Atlanta MF development (7/26) Acquired a 280-unit multifamily community in Sarasota, FL (7/27) Acquired a grocery-anchored shopping center in Columbia, SC (7/31) Closed loan supporting the construction of a 258 unit in Atlanta, GA for $18M. Capital raising: APTS issued a total of $68.6M in preferred equity in 2Q vs. our forecast of $100M. This was below the previous quarter’s issuance of $78M.”

According to TipRanks.com, Kodesch is a 3-star analyst with an average return of 7.8% and a 62.5% success rate. Kodesch covers the Financial sector, focusing on stocks such as Apartment Investment & Management, NexPoint Residential Trust Inc, and Monogram Residential Trust.

Preferred Apartment Communities has an analyst consensus of Moderate Buy, with a price target consensus of $16.50.

Education Realty Trust (NYSE: EDR)

Canaccord Genuity analyst Ryan Meliker maintained a Hold rating on Education Realty Trust (NYSE: EDR) today and set a price target of $41. The company’s shares opened today at $37.55, close to its 52-week high of $48.87.

According to TipRanks.com, Meliker is a 5-star analyst with an average return of 15.0% and a 72.0% success rate. Meliker covers the Financial sector, focusing on stocks such as Apartment Investment & Management, Preferred Apartment Communities, and NexPoint Residential Trust Inc.

Currently, the analyst consensus on Education Realty Trust is Moderate Buy and the average price target is $44, representing a 17.2% upside.

In a report released today, Sandler O’Neill also downgraded the stock to Hold.

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