This popular REIT stock still has 20% upside, according to one Wall Street analyst.
A real estate investment trust (REIT) is attracting attention on Wall Street. This may be because it has surged nearly 20% since the end of October. But one Wall Street analyst thinks: real estate income (o 1.01%) The stock could run another 20%.
The REIT’s stock has rebounded from a decline earlier this fall that fell to its lowest level in nearly four years. But Realty Income has since announced two investments that helped lead Wolfe Research analyst Andrew Rosivach to upgrade the stock to a $66 per share price target last week. This represents a 20% increase compared to recent prices. additionally, Exan BNP Paribas Analyst Nate Crossett also upgraded Realty Income and set a $63 price target for the stock.
Growth and Diversification
One of the catalysts for the recent decline in Realty’s stock price was its announcement on October 30 that it was acquiring a fellow REIT. Spirit Real Estate Capital In an all-stock deal worth about $9.3 billion. These assets will complement Realty’s existing portfolio by adding more industrial assets and greater geographic diversity.
Two weeks later, Realty announced a new joint venture: digital real estate To develop the data center, Realty will hold an 80% stake in the venture. As Property Management has grown, we have worked to add a wider variety of properties. Earlier this year, the company also announced its first investment in a large casino property in Las Vegas.
dividend stocks to own
The company expects that these growth initiatives will allow it to continue increasing its steadily increasing dividend. Shareholders have enjoyed long-standing monthly dividend payments from Realty Income, which have continued to grow for decades. Just yesterday, the company announced its 123rd dividend increase since 1994. The REIT has yielded about 5.5% on its recent stock price.
Wall Street is taking note that the decline in stock prices has provided investors with an opportunity for potential capital gains along with a steady and growing income stream. Investors who are paying attention should take advantage of the opportunity.
Howard Smith has a position at Realty Income. The Motley Fool has positions in and recommends Digital Realty Trust and Realty Income. The Motley Fool has a disclosure policy.
