BMO Capital analyst John Kim maintained a Buy rating on Global Net Lease (GNL – Research Report) today and set a price target of $10.00.
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John Kim has given his Buy rating due to a combination of factors that highlight Global Net Lease’s strategic improvements and financial prospects. The company is actively working to streamline its portfolio and reduce overhead costs, which is expected to enhance its financial metrics and make them more comparable to industry peers. Moreover, GNL is trading at a significant discount compared to the net lease sector, presenting a potential value opportunity for investors.
GNL’s recent actions, such as the completion of multi-tenant sales generating $400 million in proceeds, are primarily aimed at reducing debt, which is a critical step in improving its leverage. The company is also targeting a reduction in its leverage ratio to below 6.0x in the medium term, with the current ratio already within its near-term target range. These efforts, along with anticipated cost reductions and potential asset dispositions, are expected to strengthen GNL’s financial position and possibly lead to a credit rating upgrade, further supporting the Buy recommendation.
According to TipRanks, Kim is a 2-star analyst with an average return of 0.3% and a 46.76% success rate. Kim covers the Real Estate sector, focusing on stocks such as Easterly Government Properties, Vornado Realty, and Hudson Pacific Properties.
In another report released on June 12, Citizens JMP also reiterated a Buy rating on the stock with a $9.00 price target.