In a report released today, Ronald Kamdem from Morgan Stanley maintained a Hold rating on Realty Income (O – Research Report), with a price target of $63.00.
Ronald Kamdem has given his Hold rating due to a combination of factors impacting Realty Income’s financial outlook. The company’s guidance for 2025 is slightly below market expectations, which could lead to a neutral or negative reaction from investors. Key concerns include potential challenges related to bad debt, trends in capitalization rates, and the opportunities within their larger portfolio, particularly in sectors like Data Centers and Europe.
Additionally, interest cost headwinds are anticipated to limit the growth of Adjusted Funds From Operations (AFFO) per share in the upcoming years. While the company has maintained a strong occupancy rate and has raised its monthly dividend, the modest revision in financial projections and the current leverage position suggest a cautious approach. As a result, Kamdem’s Hold rating reflects a balanced view of both the potential opportunities and the risks associated with Realty Income’s future performance.
In another report released today, Barclays also maintained a Hold rating on the stock with a $56.00 price target.