Analyst Barry Oxford from Colliers Securities maintained a Buy rating on Postal Realty (PSTL – Research Report) and keeping the price target at $15.00.
Barry Oxford’s rating is based on the strong and stable cash flow streams from Postal Realty’s leases, which are backed by the US Postal Service. Despite concerns about potential privatization of the Post Office, Oxford believes that lease payments will remain consistent and that there will not be a significant reduction in Post Office operations.
The company’s financial performance has been robust, with a reported FFO that exceeded expectations and a high occupancy rate of 99.6%. Postal Realty has also shown growth through acquisitions, securing numerous new leases with USPS and maintaining a significant pipeline for future acquisitions. Additionally, the company has increased its dividend, reflecting confidence in its financial health and future prospects. These factors contribute to Oxford’s Buy rating for Postal Realty’s stock.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $16.75 price target.