Postal Realty, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Michael Lewis from Truist Financial maintained a Hold rating on the stock and has a $18.00 price target.
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Michael Lewis’s rating is based on a balanced view of both opportunities and challenges facing Postal Realty’s stock (PSTL). While he adjusted earnings estimates upward for 2025 and 2026, highlighting improved FAD per share growth due to the renewal of expiring leases with rent escalators, the overall cost of equity remains on the higher side, albeit nearing levels that could support additional accretive investments.
Furthermore, while the stock currently trades at a discount to net asset value (NAV) and exhibits potential for upside due to its solid dividend yield and improved blended cost of capital metrics, the valuation metrics remain somewhat tempered compared to the historical average. This mix of positive growth prospects alongside practical cost and valuation considerations underpins the decision to maintain a Hold rating, reflecting a cautious yet optimistic outlook for Postal Realty’s stock performance.