Essential Properties Realty (EPRT – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Eric Borden from BMO Capital maintained a Buy rating on the stock and has a $36.00 price target.
Eric Borden has given his Buy rating due to a combination of factors that highlight Essential Properties Realty’s strong performance and potential for growth. Despite a challenging market environment, the company reported sector-leading growth in its AFFOps results, demonstrating a 7.0% year-over-year increase. Although the full-year guidance was slightly below consensus, the company’s rent coverage remained robust at 3.5x, which is reassuring given the current economic uncertainties.
Furthermore, the company showed positive developments in its investment activities, with quarterly acquisitions rising by 23.7% year-over-year, amounting to $307.7 million. The net debt to annualized adjusted EBITDA ratio improved, indicating better financial leverage. Additionally, the exposure to top tenants decreased, and same-store ABR showed a positive trend. These factors collectively support a favorable outlook for Essential Properties Realty, justifying the Buy rating.
Borden covers the Real Estate sector, focusing on stocks such as Essential Properties Realty, Agree Realty, and Realty Income. According to TipRanks, Borden has an average return of 5.0% and a 61.90% success rate on recommended stocks.
In another report released today, Truist Financial also maintained a Buy rating on the stock with a $35.00 price target.