DREAM Unlimited Cl A (DRM – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Mark Rothschild from Canaccord Genuity maintained a Buy rating on the stock and has a C$40.00 price target.
Mark Rothschild has given his Buy rating due to a combination of factors including DREAM Unlimited’s consistent growth in recurring income and its ability to increase liquidity, which has allowed the company to enhance shareholder returns through dividends. The company has raised its dividend for the fourth consecutive year, with an 8% increase announced alongside year-end results, reflecting a substantial 170% rise since 2020. This dividend growth is supported by a strong financial performance, particularly in land sales in Western Canada, which significantly boosted the funds from operations (FFO) per share.
Furthermore, despite some declines in other segments, the overall financial outlook remains positive, with recurring income expected to continue rising due to increased asset management fees and contributions from development projects. The valuation of DREAM Unlimited also plays a critical role in the Buy rating, as the net asset value (NAV) per share is estimated to be significantly higher than the current share price, indicating a potential for substantial returns. Consequently, Rothschild maintains a target price of $40.00, reinforcing the Buy recommendation.
Rothschild covers the Real Estate sector, focusing on stocks such as RioCan Real Estate Investment, Dream Office Real Estate Investment, and Choice Properties Real Estate Investment. According to TipRanks, Rothschild has an average return of 7.5% and a 61.12% success rate on recommended stocks.