Wells Fargo analysts raised the price target for AvalonBay Communities (NYSE:AVB) to $244, up from $222, while maintaining an Overweight rating.

The analysts emphasized AvalonBay's strong positioning within the multifamily real estate investment trust (REIT) sector, citing sector-leading growth in core funds from operations (CFFO) for 2025, incremental development initiatives, and portfolio exposure in key markets. The analysts also noted the company's operational improvements, lack of legal risk from the RealPage lawsuit, and a robust balance sheet that supports additional investment. AvalonBay expects to achieve $43 million in incremental net operating income (NOI) through its Horizon initiatives, with projected blended rent growth of 3.1% in 2025, contributing to revenue and CFFO growth exceeding industry benchmarks.