NexPoint Residential Trust Fair Value Cut 13% to US$26.50 After Analyst Target Reductions

Simply Wall St··US·Read original
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Summary · why it matters

The fair value estimate for NexPoint Residential Trust has been revised down from US$30.40 to US$26.50, a reduction of about 13% in the updated model. The revision follows analyst target cuts, with Truist lowering its price target to US$18 from US$26 and Deutsche Bank reducing its target to US$23 from US$27, while both firms maintain Hold ratings on the stock. Truist said its 2027 NFFO estimate was reduced by 24% after a 21% trim a quarter earlier due to higher interest rates, and pointed to net debt or EBITDA near 12x and 86% of debt unhedged at floating rates as of 1 September 2026. Deutsche Bank moved the broader multifamily real estate investment trust sector to a Neutral rating and flagged earnings pressure from interest rates. In the revised valuation framework, the revenue growth assumption moved from 1.48% to 3.10%, the net profit margin assumption shifted from 14.98% to 16.41%, the future P/E multiple was reduced from 25.61x to 20.55x, and the discount rate increased from 9.92% to 10.60%.

Impact on assets 3

Financials▼ · 2 stocks
Deutsche Bank Aktiengesellschaft
DBK
▼ NegativeCapitalrelevance

Deutsche Bank lowered its NexPoint Residential Trust target to US$23 from US$27 and moved the multifamily REIT sector to Neutral on interest-rate earnings pressure.

Truist Financial Corp
TFC
▼ NegativeCapitalrelevance

Truist cut its NexPoint Residential Trust price target to US$18 from US$26 and trimmed its 2027 NFFO estimate by 24% on higher interest rates.

Real Estate▲ · 1 stocks
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