MF REIT Bear of the Day

Citing volatility and an expected decline in market fundamentals for the multifamily sector, Zacks Equity Research's Bear of the Day for March 24 was BRE Properties, a multifamily real estate investment trust based in San Francisco. In its press release, Zacks said its long-term recommendation for the company's stock is underperform. "BRE Properties also has exposure to some weakening multifamily markets, notably, the Inland Empire, Los Angeles, and Orange County. However, home values in most of BRE Properties markets are still among the highest in the country and the rent-to-own gap remains high. The company also maintains strong occupancy levels and high operating margins. If the company can weather the current storm, it may expect a reversal of fortunes." But Zacks has a target price of $32 per share as it thinks BRE will perform "well below the broader market." During the morning on March 25, BRE has been trading at or near its 52-week high, with a price of $37.44 around midday.