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 $37.00 price target.
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Eric Borden has given his Buy rating due to a combination of factors that highlight Essential Properties Realty’s strong performance and growth potential. The company demonstrated sector-leading growth in AFFOps, with a notable year-over-year increase of 7.5%, which is well above its peers. Despite a slight shortfall in revised guidance compared to consensus, EPRT’s competitive position in acquisitions and its second-highest rent coverage in the sector provide a solid foundation for continued success.
Furthermore, EPRT’s quarterly acquisitions rose significantly, enhancing its portfolio with attractive cash and GAAP cap rates. The leasing recovery rate improved, signaling healthy tenant relationships and occupancy. Additionally, a reduction in top tenant exposure and net debt improvements reflect a strategic financial management approach. While there are concerns such as the carwash industry’s challenges impacting credit quality, these are mitigated by EPRT’s strong overall financial metrics and attractive valuation compared to peers.
Borden covers the Real Estate sector, focusing on stocks such as Stag Industrial, Agree Realty, and Essential Properties Realty. According to TipRanks, Borden has an average return of 4.6% and a 61.11% success rate on recommended stocks.
In another report released yesterday, Capital One Financial also initiated coverage with a Buy rating on the stock with a $35.00 price target.