Analyst John Kilichowski of Wells Fargo maintained a Hold rating on Realty Income (O – Research Report), with a price target of $59.00.
John Kilichowski’s rating is based on a combination of factors, including the recent financial performance and future guidance of Realty Income. The company’s adjusted funds from operations (AFFO) per share guidance came in below both Wells Fargo’s and the Street’s expectations, despite higher-than-anticipated investment volumes in the fourth quarter. This discrepancy was attributed to lower initial yields, increased bad debt, and reduced reimbursed expenses.
Additionally, Realty Income’s transaction activity showed a significant investment volume, yet there was a noticeable yield compression due to heightened competition for portfolio deals. The company’s leverage remained stable, but concerns about increased non-reimbursable expenses and tenant issues were highlighted. These elements contributed to the decision to maintain a Hold rating, reflecting a cautious outlook on the stock’s potential performance.
Kilichowski covers the Real Estate sector, focusing on stocks such as National Retail Properties, Agree Realty, and Welltower. According to TipRanks, Kilichowski has an average return of -1.2% and a 44.00% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $56.00 price target.