Analyst Ki Bin Kim of Truist Financial maintained a Hold rating on Broadstone Net Lease (BNL – Research Report), retaining the price target of $17.00.
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Ki Bin Kim has given his Hold rating due to a combination of factors influencing Broadstone Net Lease’s stock performance. The company’s guidance for 2025 Adjusted Funds From Operations per share (AFFO/sh) is slightly below consensus expectations but aligns closely with Kim’s projections, demonstrating steady growth. Despite the high cost of equity, the management is actively pursuing growth through development initiatives, with a substantial amount of investments in the pipeline.
Furthermore, the valuation of Broadstone Net Lease at 10.5 times the price to AFFO appears reasonable, but not compelling enough to warrant a more aggressive rating. While the company has managed to reduce its exposure to Clinical and Surgical to a small percentage of annualized base rent, the earnings report showed a slight year-over-year decline in AFFO per share for the fourth quarter. These factors collectively support the decision to maintain a Hold rating, reflecting a balanced view of growth prospects and current valuation.