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Strong Growth and Strategic Acquisitions Drive Buy Rating for Essential Properties Realty

Strong Growth and Strategic Acquisitions Drive Buy Rating for Essential Properties Realty

Essential Properties Realty, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ki Bin Kim from Truist Financial maintained a Buy rating on the stock and has a $36.00 price target.

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Ki Bin Kim has given his Buy rating due to a combination of factors that highlight Essential Properties Realty’s robust performance and strategic acquisitions. The company reported a slightly lower than expected AFFO per share for the second quarter, but its full-year guidance was marginally increased, indicating a strong year-over-year growth rate of 8%, which is among the highest in its sector.
Additionally, Essential Properties Realty demonstrated an active acquisition strategy with $334 million in acquisitions at a favorable yield, surpassing previous estimates. Despite earlier discussions about reducing exposure to certain segments, the company continued to invest in high-yield opportunities, such as car washes, which now account for a significant portion of their portfolio. The credit metrics also showed resilience, with a slight improvement in tenant coverage ratios, suggesting stability in tenant credit quality.

According to TipRanks, Bin Kim is a 4-star analyst with an average return of 7.3% and a 57.29% success rate. Bin Kim covers the Real Estate sector, focusing on stocks such as Cubesmart, NETSTREIT, and Lineage, Inc..

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $36.00 price target.

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