Broadstone Net Lease stock rating reiterated at Market Outperform by JMP

Investing.com - JMP Securities has reiterated its Market Outperform rating and $21.00 price target on Broadstone Net Lease (NYSE:BNL), citing the company’s recent senior notes offering as a strategic funding move. The company, currently valued at $3.58 billion, maintains strong financial health with a current ratio of 1.9x, indicating solid liquidity. According to InvestingPro data, BNL’s stock is trading near its 52-week high of $19.15.

The $350 million senior notes offering, which carries a seven-year term and a 5.0% interest rate, is expected to support Broadstone’s expanding deployment pipeline. Management recently increased its deployment midpoint by $100 million for 2025, signaling an active year for investments. The company maintains an impressive gross profit margin of 94.51% and offers investors a substantial 6.4% dividend yield.

JMP views the notes offering as an "integral component" of Broadstone’s funding strategy, while also highlighting the company’s successful portfolio rationalization efforts that have improved cash flows without significant dilution.

The firm notes that Broadstone has maintained stable balance sheet metrics with a debt-to-EBITDA ratio of 5.3x, demonstrating disciplined financial management amid its growth initiatives.

According to JMP, Broadstone currently trades at approximately a 1.5-turn discount to the net-lease REIT sector average of 13.7x 2025 estimated AFFO per share, which the firm considers attractive given the company’s improved portfolio quality and earnings growth prospects. InvestingPro analysis reveals several additional bullish indicators, with more than 8 key ProTips available to subscribers, including insights on the company’s dividend history and profitability metrics.

In other recent news, Broadstone Net Lease, Inc. has completed a $350 million public offering of senior unsecured notes due in 2032. These notes carry an interest rate of 5.000% and were priced at 99.151% of their principal amount, with a maturity date set for November 1, 2032. The offering was fully guaranteed by Broadstone Net Lease, Inc. and conducted under an effective shelf registration statement. In addition, Goldman Sachs has upgraded Broadstone Net Lease’s stock rating from Sell to Buy, raising its price target to $21.00. This decision was influenced by Broadstone’s successful healthcare portfolio disposition and expected earnings growth from its development pipeline. KeyBanc also upgraded the stock from Sector Weight to Overweight, setting a price target of $20.00. This upgrade was attributed to Broadstone’s strategic portfolio repositioning, which included significant asset dispositions over the past 18 months. These developments highlight recent strategic moves by Broadstone Net Lease to strengthen its financial position and growth prospects.

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