Investing.com - Raymond James upgraded Essex Property Trust (NYSE: ESS ) from Market Perform to Outperform on Tuesday, setting a price target of $315.00.

The upgrade comes as San Francisco and San Jose markets, where Essex has significant presence, are "easily outperforming every other market in the country YTD in terms of y/y rent growth," according to Raymond James. This performance is attributed to "a surge of A.I.-related tech investments and improved quality-of-life initiatives in the urban cores."

The firm believes Essex is "well-positioned to deliver potential upside into relatively conservative guidance" despite broader industry trends showing deceleration in multifamily rental growth rates through mid-June, which Raymond James describes as a "seasonally unusual pattern."

Raymond James’ analysis of high-frequency rental data collected through CoStar reveals that over the past 90 days, only four markets out of 34 key metros showed improvement in year-over-year asking rates: San Francisco, Minneapolis, East Bay, and New York.

The firm made additional adjustments to its multifamily estimates ahead of second-quarter 2025 results, which included not only upgrading Essex Property Trust but also lowering MAA Communities (NYSE: MAA ) to Market Perform.

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