BMO Capital analyst John Kim maintained a Hold rating on Postal Realty today and set a price target of $15.00.
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John Kim has given his Hold rating due to a combination of factors that reflect both positive and cautious outlooks for Postal Realty. The company demonstrated strong performance in the second quarter of 2025, with its AFFOps exceeding expectations by 26.9% year-over-year, driven by successful acquisition strategies and improved acquisition yields. Additionally, the full-year 2025 AFFOps guidance was raised by 3.3%, indicating a robust growth outlook compared to the sector.
However, despite these positive developments, there are reasons for caution. The full-year guidance suggests a slowdown in growth momentum, as indicated by a sequential deceleration in AFFOps. Furthermore, while the company has made significant progress in its acquisition goals, having completed 67% of its investment guidance year-to-date, the potential for future growth may be tempered by these decelerating trends. These mixed signals contribute to the Hold rating, balancing the company’s strong performance with the potential for future challenges.
Kim covers the Real Estate sector, focusing on stocks such as Sun Communities, Boston Properties, and Kilroy Realty. According to TipRanks, Kim has an average return of -1.0% and a 42.83% success rate on recommended stocks.