In a report released today, John Kim from BMO Capital reiterated a Buy rating on Broadstone Net Lease (BNL – Research Report), with a price target of $20.00.
John Kim’s rating is based on Broadstone Net Lease’s strategic shift towards build-to-suit developments and revenue-generating capital expenditures, which are expected to enhance the company’s value and address tenant needs effectively. This revised approach aims to achieve mid-single-digit earnings growth by 2026, which is a positive indicator for potential investors.
Additionally, the company’s focus on accretive acquisitions through off-market transactions and the significant reduction of its healthcare portfolio in favor of industrial and retail sectors further strengthens its growth prospects. The emphasis on build-to-suit developments, despite being driven by capital costs, offers attractive returns and access to new products, positioning BNL favorably against its weighted average cost of capital.
According to TipRanks, Kim is a 3-star analyst with an average return of 0.5% and a 48.48% success rate. Kim covers the Real Estate sector, focusing on stocks such as Federal Realty, Eastgroup Properties, and Howard Hughes Holdings.