Analyst Ki Bin Kim of Truist Financial maintained a Buy rating on Essential Properties Realty (EPRT – Research Report), retaining the price target of $35.00.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Ki Bin Kim has given his Buy rating due to a combination of factors that highlight Essential Properties Realty’s strong performance and strategic advantages. The company’s earnings for the first quarter of 2025 were in line with consensus expectations, and its guidance for adjusted funds from operations per share remains steady, indicating financial stability. Additionally, Essential Properties Realty is benefiting from a favorable cost of capital, allowing it to acquire assets at an accelerated pace, which supports future growth prospects.
Furthermore, the company’s tenant base shows no significant credit deterioration, with occupancy rates remaining high at 99.7%. Although there are mixed results in rent coverage ratios, the overall impact is neutral, with minimal exposure to the bankruptcy of Zips Car Wash. The company is also strategically reducing its exposure to certain sectors like car washes and casual dining, which could mitigate potential risks. These factors collectively support the Buy rating as Essential Properties Realty continues to demonstrate resilience and growth potential.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $35.00 price target.