Spirit Realty downgraded to Market Perform from Outperform at JMP Securities

JMP Securities analyst Mitch Germain downgraded Spirit Realty (SRC) to Market Perform from Outperform without a price target following the announced merger with Realty Income (O) in a stock-for-stock transaction valuing the combined company at $9.3B. The shares are no longer expected to trade on fundamentals and performance, but on the merger ratio of 0.762 shares of Realty Income, the analyst tells investors in a research note. The firm does not suspect another suitor will emerge, particularly given the value derived from this transaction.