Citizens updated its view on American Homes 4 Rent (NYSE:AMH), lowering the firm's price target to $37 from $41 while maintaining a Market Outperform rating. The analyst driving the change, Aaron Hecht, pointed to regulatory commentary and policy initiatives related to homeownership as a notable factor in conversations around the name.
Hecht referenced President Trump's executive order and congressional legislation focused on broadening access to homeownership as topics that have entered the dialogue. Citizens' research team continues to view companies such as AMH as contributors to policymakers' affordability objectives by adding housing units to the existing supply, a dynamic the firm believes supports rental demand.
At the time of the update, AMH shares were trading at $29.52, giving the company a market capitalization of $12.23 billion. Citizens also highlighted that the stock is trading at a historic net asset value discount. Supporting market weakness, InvestingPro data show AMH near its 52-week low of $28.84 and down nearly 13% over the past 12 months.
The report notes that renting remains relatively more affordable than ownership in Citizens' view, and that affordability dynamics are a central factor in ongoing demand for AMH's assets. The stock offers a dividend yield of 4.47% and has increased its dividend for five consecutive years, a point noted in InvestingPro's subscriber tips.
Earnings and near-term results
American Homes 4 Rent reported fourth-quarter 2025 earnings that exceeded expectations on the bottom line. The company posted earnings per share (EPS) of $0.33 versus analyst estimates of $0.20, representing a 65% earnings surprise. Revenue for the quarter came in at $454.99 million, slightly below the forecasted $458.45 million.
Citizens and other market observers have not recorded new analyst ratings tied to the earnings release. The results underscore a divergence between AMH's ability to manage earnings and the near-term revenue shortfall; investors and analysts continue to monitor the company's financial performance.
Market positioning and firm view
Despite the trimmed price target, Citizens remains a buyer of AMH shares. The firm sees the company's inventory additions as aligned with policy goals and believes rental affordability maintains demand on AMH's side. Citizens' coverage of U.S. equities includes AMH among more than 1,400 stocks covered in its comprehensive Pro Research Reports.
Overall, the combination of a maintained Market Outperform rating, a lower price target, dividend yield, recent EPS outperformance, and a modest revenue miss frames the current assessment of AMH as one where company fundamentals and policy dialogue both factor into investor consideration.