NNN REIT initiated with an Overweight at Barclays

Barclays initiated coverage of NNN REIT (NNN) with an Overweight rating and $48 price target. The market is either over-penalizing NNN for lesser tenant credit quality, or over-paying for Agree Realty (ADC) for the opposite, the analyst tells investors in a research note, adding however that the 100bp cap rate spread is sufficiently accounting for those differences.