Raymond James upgraded Essex Property Trust (NYSE: ESS) from Market Perform to Outperform. The firm established a new price target of $320.00. Essex generates 40% of its net operating income from the San Francisco Bay Area.
The artificial intelligence boom is driving regional rental demand and pricing power. Raymond James noted that current market conditions mirror the strength of the dot-com era.
Analysts raised funds from operations (FFO) estimates for fiscal years 2026 and 2027. The firm expects the accelerating Bay Area recovery to help Essex exceed its financial guidance. This positive outlook follows a recent dividend declaration and strong first-quarter 2026 results.