Net Lease Office initiated with a Buy at BWS Financial

BWS Financial analyst Hamed Khorsand initiated coverage of Net Lease Office Products (NLOP) with a Buy rating and $60 price target. Net Lease, which was created and spun out of W. P. Carey (WPC) to oversee the liquidation of 59 office properties, is getting “lumped into the negative investor sentiment towards office buildings” and trading at “a fraction of its book value,” the analyst tells investors. On a cap rate valuation basis, Net Lease’s equity value “should be considerably more than the current market price,” the analyst contends.