In a report released yesterday, Anthony Paolone from J.P. Morgan maintained a Hold rating on Gaming and Leisure, with a price target of $52.00.
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Anthony Paolone has given his Hold rating due to a combination of factors that influence the financial outlook of Gaming and Leisure Properties (GLPI). The company’s current financial model shows stable growth projections for the next few years, with AFFO per share estimates aligning closely with Bloomberg’s consensus. However, there are uncertainties, particularly concerning the timing of the Bally’s Chicago financing and the potential impact of the 2026 call option on Bally’s Lincoln, which could lead to a wide range of outcomes in 2027.
While GLPI has demonstrated its capability in acquiring high-yielding assets and maintaining a strong position in the gaming net lease REIT sector, there are concerns about its high concentration of projects with Bally’s, which introduces higher risks. The stock trades at a discount compared to its peers in the net lease group, but the current premium over its net asset value suggests limited upside potential. Given these considerations, Paolone finds other investment opportunities more compelling at this time, leading to the Hold rating.
In another report released on August 28, Scotiabank also maintained a Hold rating on the stock with a $50.00 price target.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GLPI in relation to earlier this year.