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Student Landlord Defended on Wall Street as Virus Roils Campuses

  • Analyst sees Florida, Texas schools as resistant to closures
  • ACC could benefit as universities look to ‘de-densify’ housing

Two analysts defended American Campus Communities Inc.’s long-term growth prospects even as Covid-19 outbreaks are leading some U.S. colleges to change plans for in-person classes. Shares of the student-housing owner fell as much as 4.1% intraday, touching their lowest since May, adding to Tuesday’s 4.7% decline.

“We would use any weakness in ACC to add to positions as we believe the fundamental value hasn’t really changed much even if Covid-19 cases are a bit higher than expected this fall,” Evercore ISI analyst Steve Sakwa said in a note out midday Tuesday.