Mark Rothschild, an analyst from Canaccord Genuity, maintained the Buy rating on DREAM Un Cl A. The associated price target is C$38.00.
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Mark Rothschild has given his Buy rating due to a combination of factors that suggest a positive outlook for DREAM Unlimited. Despite a quiet quarter, the company is expected to see an uptick in earnings in the latter half of the year, driven by a significant volume of lot sales. The company has major development projects underway, which position it well for sustained cash flow growth in the coming years. Additionally, management has indicated that $155 million in land sales are anticipated to be completed in the second half of 2025 and into 2026, which should bolster financial performance.
Furthermore, DREAM Unlimited’s shares are currently trading at a substantial discount to the estimated net asset value (NAV), which presents a potential opportunity for investors. Although the recent financial results showed a drop in funds from operations (FFO) due to the timing of land sales and a non-recurring fee from the previous year, the income properties segment showed growth, supported by rent increases and lower interest expenses. These factors combined with the expected acceleration in land sales later in the year contribute to the Buy rating.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$24.00 price target.