JMP Securities analyst Mitchell Germain maintained a Buy rating on Global Net Lease (GNL – Research Report) today and set a price target of $9.00.
Mitchell Germain has given his Buy rating due to a combination of factors that highlight Global Net Lease’s strategic moves to strengthen its financial position. The company’s decision to exit the shopping center segment is a key component of its leverage reduction strategy. This move is expected to positively impact the company’s financial metrics, as it shifts focus to single-tenant assets with longer lease terms and reduced capital expenditure needs. Such a strategic shift is anticipated to lead to a positive re-rating of the company’s stock multiple.
Furthermore, the sale of shopping centers for $1.78 billion aligns with the company’s ongoing de-leveraging efforts, which have already shown progress. The proceeds from these sales are being used to reduce debt, thereby lowering leverage ratios. Additionally, the company’s shares are trading at a significant discount compared to the broader net-lease REIT sector, which presents a potential upside for investors. These factors combined suggest a favorable outlook for Global Net Lease, justifying the Buy rating.