TCN - Tricon Residential stock gains after nabbing Strong Buy from Raymond James

• Tricon Residential ( NYSE: TCN ) stock is rising 4.6% in Tuesday premarket trading after Raymond James analyst Brad Sturges upgraded the single-family house rental firm to Strong Buy from Outperform on strong demand for single-family rentals ("SFR") and improved relative valuation.
• Higher mortgage rates is hurting home affordability, which supports demand for SFR. Meanwhile, Tricon's ( TCN ) shares have dropped more than its peers in Q2, resulting in a relative discount.
• Sturges sees potential near-term positive catalysts, including a possible recapitalization of Tricon's ( TCN ) joint venture U.S. multifamily rental fund.  "If completed, Tricon may crystalize ~$200M in equity value from a recapitalization of its US MFR JV fund, which could provide a near-term runway for Tricon to fund its SFR acquisition JV equity commitments that total around $500M over the next 2-3 years," the analyst wrote in a note to clients.
• Sturges's Strong Buy rating compares with the average Wall Street rating of Buy
• SA contributor Ross Bowler also has a Strong Buy on Tricon ( TCN ) based on expected continued strong demand for single-family home rentals.

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