Analyst Barry Oxford from Colliers Securities maintained a Buy rating on Plymouth Industrial Reit (PLYM – Research Report) and decreased the price target to $19.00 from $21.00.
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Barry Oxford has given his Buy rating due to a combination of factors including Plymouth Industrial REIT’s strategic focus on acquiring A-/B+ industrial properties in non-gateway markets, which offer attractive growth prospects and cap rates that surpass their cost of capital. The company’s strategy of targeting $10 – $50 million property transactions allows it to operate in a niche market that is often overlooked by larger institutions and REITs.
Despite reporting Core FFO numbers slightly below estimates, the company has shown resilience with a stable occupancy rate of 94.3% and significant increases in rental rates for new and renewed leases. Additionally, Plymouth’s acquisition activities, including six Class B acquisitions with a strong yield, and a slightly leveraged balance sheet with no debt maturing in 2025, further support the Buy rating. The company’s proactive approach in addressing lease expirations and its capacity for future acquisitions also contribute to the positive outlook.
Oxford covers the Real Estate sector, focusing on stocks such as Postal Realty, AvalonBay, and Mid-America Apartment. According to TipRanks, Oxford has an average return of 0.6% and a 51.52% success rate on recommended stocks.