BMO maintains Outperform on Broadstone Net Lease shares

Friday - BMO Capital Markets has reaffirmed its Outperform rating on Broadstone Net Lease (NYSE:BNL) with a steady price target of $20.00. The endorsement follows a series of investor meetings with Broadstone’s CEO John Moragne and EVP & CFO Kevin Fennell. BMO’s analysis indicates Broadstone’s dedication to securing an additional $500 million in build-to-suit (BTS) projects this year, which would expand their project pipeline to over $800 million.

In the competitive landscape of acquisitions, Broadstone is experiencing cap rate compression, yet the company’s watch list is showing signs of improvement. BMO’s assessment suggests that Broadstone’s distinct development strategy is pivotal for narrowing its current valuation gap. According to InvestingPro analysis, the company currently appears slightly overvalued, though it maintains a healthy 7.27% dividend yield and has raised dividends for 5 consecutive years.Want deeper insights? InvestingPro subscribers get access to 6 additional ProTips and comprehensive financial analysis for BNL, including detailed Fair Value calculations and health scores.

Broadstone’s commitment to its development strategy is central to the analyst’s positive outlook. The company’s focus on expanding its pipeline through significant BTS projects is seen as a strategic move to enhance its market position. With a solid financial health score of 2.61 (rated as "Good" by InvestingPro) and a current ratio of 1.93, Broadstone’s improving watch list is a positive indicator of potential growth opportunities.

BMO’s reiterated $20 price target reflects confidence in Broadstone’s ability to execute its unique development strategy effectively. The firm’s analysis supports the notion that successful implementation of this strategy could align Broadstone’s valuation more closely with its intrinsic value.

Broadstone Net Lease continues to concentrate on identifying lucrative BTS projects as part of its growth plan. With a robust pipeline and a strategic approach to development, the company is poised to address the challenges of cap rate compression in the acquisitions market. BMO’s reiterated rating and price target underscore a belief in Broadstone’s potential to close its valuation gap through diligent execution of its development strategy.

In other recent news, Broadstone Net Lease Inc . reported its first-quarter 2025 earnings, revealing a shortfall in both earnings per share (EPS) and revenue compared to analyst expectations. The company posted an EPS of $0.09, missing the forecast of $0.18, and generated revenue of $108.69 million, slightly below the anticipated $108.93 million. Despite this, Broadstone Net Lease maintained its 2025 AFFO guidance range of $1.45 to $1.49 per share. In other developments, Citizens JMP reaffirmed its Market Outperform rating and $21.00 price target for the company, highlighting its growing development pipeline and financial health. Additionally, Broadstone Net Lease announced the results of its 2025 Annual Meeting of Stockholders, where nine directors were elected, and Deloitte & Touche LLP was ratified as the independent auditor for the fiscal year. The company also maintained its $0.29 dividend per share for the second quarter of 2025. These recent developments indicate ongoing strategic investments and financial maneuvers by Broadstone Net Lease.

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