
ESS Stock Forecast & Price Target
ESS Analyst Ratings
Bulls say
Essex Property Trust is projected to achieve a 3.6% year-over-year same-store revenue growth in 2026, with expenses expected to grow by 3.2%, indicating a robust 3.8% increase in same-store net operating income (SSNOI). Additionally, the company anticipates a normalized funds from operations (FFO) growth of 2.7% in 2025, followed by an acceleration to 3.6% in the subsequent year. The potential for increased apartment demand in key West Coast markets, driven by factors such as an AI employment surge and pent-up demand from recent wildfires, further supports a positive outlook for the stock.
Bears say
Essex Property Trust's outlook appears negative due to soft employment trends in California, which may adversely influence demand for rental properties in its target markets. Additionally, the company’s stock is currently trading at a narrow discount to net asset value (NAV), the lowest implied cap rate in its apartment coverage universe, and exhibits above-average funds from operations (FFO) and funds available for distribution (FAD) multiples. These financial metrics, combined with a slight reduction in the 2026 FFO estimate, suggest potential challenges for the company's growth and overall stock performance, particularly if labor market conditions do not improve or if residents seek more affordable housing options elsewhere.
This aggregate rating is based on analysts' research of Essex Property Trust and is not a guaranteed prediction by Public.com or investment advice.
ESS Analyst Forecast & Price Prediction
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