B. Riley has reaffirmed its Buy recommendation for RMR Group (RMR, Financial), maintaining a price target of $24. This update comes as the firm transitions its coverage of the company. Despite a notable 26.5% decline in RMR's stock value so far this year, this performance mirrors the broader downturn affecting publicly traded real estate investment trusts (REITs) that RMR manages.
The company's revenues are largely derived from fee income tied to the total market capitalization of these managed REITs, which has been impacted by the sector's overall stock price drop. Despite these challenges, the Buy rating suggests confidence in the company's potential to recover and meet the set price target.
