RBC Capital increased its price target on UDR, Inc. (NYSE: UDR) to $39.00 from $38.00 on Tuesday and retained a Sector Perform rating on the apartment REIT. The firm attributed the move to an improved rental spread outlook for the first quarter of 2026 and described UDR's recent reporting as a "unique earnings report compared to peers."
According to RBC, UDR has seen meaningful improvement in rental spreads in its Q1 2026 outlook after underperformance through the latter half of 2025. That better-than-expected trajectory for rental pricing was a primary contributor to the upward adjustment of RBC's price target.
RBC also noted that UDR is taking advantage of current pricing dislocations in the market to both sell assets and repurchase shares. The analyst firm said this approach mirrors actions taken by many of UDR's apartment-sector peers and reflects an active use of capital in a shifting valuation environment.
Highlighting how UDR differs from the broader apartment REIT group, RBC observed that the company is in "the rare position of seeing estimates/target move higher," a contrast with sector peers that have "almost exclusively seen negative revisions" to their forecasts.
Separate company disclosures show UDR posted a robust set of fourth-quarter results. Reported earnings per share for the quarter were $0.67, well above the consensus estimate of $0.16, representing a surprise of 318.75%. Revenue for the quarter came in at $433.11 million versus an expected $431.06 million. These results demonstrated a meaningful beat on both EPS and top line versus analyst projections.
Investor sentiment around UDR has been positive following the quarterly surprise and the more favorable rental spread outlook, according to the reporting. The combination of stronger operational metrics and active balance-sheet moves informed RBC's decision to nudge its price target higher.
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Note - The company-specific figures and analyst views summarized above reflect the data and commentary reported in the recent analyst update and quarterly results.