BMO Capital analyst Eric Borden has maintained their neutral stance on O stock, giving a Hold rating on February 14.
Eric Borden has given his Hold rating due to a combination of factors impacting Realty Income’s performance. The company’s fourth-quarter 2024 results were underwhelming, with AFFOps missing expectations and the 2025 guidance falling short of market predictions. Despite significant investments in the fourth quarter and planned investments for 2025, the anticipated growth in AFFOps is modest compared to peers, likely due to lower cap rates.
On the positive side, Realty Income has initiated a $2.0 billion share repurchase program, which provides some support for the stock. Additionally, the company’s exposure to investment-grade tenants has improved, and the rent recapture rate remains strong. However, challenges such as the recorded impairment and weak same-store rental revenue growth in certain sectors contribute to the cautious outlook, justifying the Hold rating.
In another report released on February 14, J.P. Morgan also maintained a Hold rating on the stock with a $64.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of O in relation to earlier this year.