In a report released today, Eric Borden from BMO Capital maintained a Buy rating on Essential Properties Realty, with a price target of $36.00.
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Eric Borden has given his Buy rating due to a combination of factors that highlight Essential Properties Realty’s strong performance and potential for growth. Despite the company’s 2025 AFFOps and 2026 guidance falling short of market expectations, Borden notes that the 2026 AFFOps guidance suggests a growth rate of 6.9%, which is significantly higher than the peer average of 3.5%. Additionally, the company’s valuation remains appealing with a PEG ratio of 2.2x compared to peers at 3.5x.
Essential Properties Realty’s core portfolio shows resilience with improvements in rent coverage, same-store revenue, and occupancy rates in the third quarter of 2025. The company also accelerated its quarterly acquisitions by 10.7% quarter-over-quarter, reaching $369.8 million, and achieved record GAAP cap rates of 10.0%. Furthermore, the portfolio’s leased occupancy increased to 99.8%, and the weighted average lease term stands at 14.4 years, indicating a stable and long-term revenue stream.
According to TipRanks, Borden is a 3-star analyst with an average return of 6.0% and a 73.08% success rate.
In another report released on October 20, Barclays also maintained a Buy rating on the stock with a $36.00 price target.