An analyst upgraded Millrose Properties to Strong Buy and set a $30 price target, calling the recent sell-off dramatically overdone.
The stock has fallen 29% since September amid concerns about its new single-family rental (SFR) business. The analyst argues the market reaction is disproportionate. Millrose has lost $1.7 billion in market value. That compares with $200 million in home purchases for the new venture, the report says.
The positive analysis comes as Millrose faces numerous securities class action lawsuits. The suits allege the company misled investors by failing to disclose its entry into the rental market through home purchases from its former parent company. Those purchases reportedly led to an 8.5% stock decline in early October.