Apartment Investment And Management Co. Stock Has A 60% Upside

SectorFinancial Markets
CountryMiddle east

We believe that Apartment Investment and Management Co. stock (NYSE: AIV) has an upside potential of 60% in 1-2 years once the occupancy rates and demand in residential property rent and lease markets improves to pre-Covid levels. AIV trades at $32 currently and it has lost 38% in value year-to-date. It traded at a pre-Covid high of $54 in February and is 41% below that level now.

Also, AIV stock has gained 27% from the lows of $25 seen in March 2020, after the multi-billion dollar stimulus package announced by the U.S. government which has helped the stock market recover to a large extent. The stock is lagging the broader markets by a huge margin (S&P 500 is up about 60%), as investors are cautious about the impact of lower occupancy and decline in rental rates on its revenues. The company owns and manages a geographically diversified portfolio of multifamily apartment properties in the United States. Due to the Covid-19 crisis, businesses have suffered losses, leading to higher unemployment and economic uncertainty. This has affected both occupancy and rental rates, as more and more people are looking for cheaper housing options. The same is evident from a 6% drop in ...read more...