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RBC Capital Markets upgraded Centerspace (NYSE:CSR) stock to Outperform from Sector Perform in a recent note as strength in the REIT’s multi-family markets has been underappreciated by investors.
The North Dakota-based company’s “markets have been leading the apartment group in performance for some time given better affordability and supply dynamics, which should give CSR a chance to lead the group in 2024 rent growth,” analyst Brad Heffern wrote in a note.
The stock, however, doesn’t reflect the robust performance, carrying the lowest valuation in Heffern’s coverage across all metrics.
“While some might blame this on the balance sheet, we think leverage will become a benefit when valuations again move higher, and CSR has the best maturity schedule in our coverage,” the note said.
His Outperform rate diverges from the SA Quant system rating of Hold and aligns with the average Wall Street analyst rating of Buy.
CSR gained 0.8% in late morning trading.
