BMO Capital analyst John Kim maintained a Buy rating on Broadstone Net Lease today and set a price target of $21.00.
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John Kim has given his Buy rating due to a combination of factors that highlight Broadstone Net Lease’s strategic growth initiatives and financial performance. The company has demonstrated a solid growth profile, with its adjusted funds from operations per share (AFFOps) increasing by 3.7% year-over-year, which outpaces its net lease peers. Additionally, BNL’s valuation is attractive with a discounted multiple of 11.2x, making it a compelling investment opportunity.
BNL’s focus on build-to-suit developments is a key component of its growth strategy, with a pipeline valued at $583 million, offering higher yields compared to typical acquisitions. The company’s innovative approach is further exemplified by “Project Triboro,” a joint venture development near Scranton, PA, which has significant potential for industrial and data center projects. This project benefits from a substantial power commitment from PA Power & Light, enhancing its attractiveness. These strategic initiatives and financial metrics underpin John Kim’s positive outlook on BNL, justifying the Buy rating.