Realty Income downgraded to Neutral from Outperform at Mizuho

Mizuho downgraded Realty Income (O) to Neutral from Outperform with a price target of $60, down from $64, as part of a broader research note. The firm is turning less constructive on Tripe Net REITs as expectations of higher inflation and a “higher for longer” rate environment should weigh on the sector’s investment spreads and growth potential, marking the end of the “pivot party”, the analyst tells investors in a research note. Mizuho adds that Realty Income should generate less AFFO growth relative to its peers in 2025 given tighter investment spreads and that capital deployment and growth expectations may fall short of consensus expectations.