In a report released today, John Massocca from B.Riley Financial downgraded Essential Properties Realty (EPRT – Research Report) to a Hold, with a price target of $33.50.
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John Massocca has given his Hold rating due to a combination of factors related to Essential Properties Realty’s current market position and valuation metrics. Although the company’s recent quarterly results met expectations and its financial performance remains solid, the valuation of EPRT is a key consideration. The stock’s premium compared to its peers is already high, and its valuation metrics suggest that further outperformance is unlikely.
Another factor influencing the Hold rating is the convergence of cap rates with its competitors, which suggests that the REIT’s operations are becoming more aligned with industry norms. Additionally, EPRT’s growth outlook is closely linked to broader market conditions, including interest rates, which may impact future performance. Despite confidence in the management team and the REIT’s strong growth profile, potential tenant credit risks and an average age portfolio also contribute to the decision to maintain a Hold rating, while the price target has been adjusted upwards to reflect updated estimates.
In another report released on February 14, Evercore ISI also maintained a Hold rating on the stock with a $34.00 price target.