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Investing.com - Wolfe Research upgraded Broadstone Net Lease (NYSE:BNL) from Peerperform to Outperform on Monday, setting a price target of $19.00. According to InvestingPro data, the company maintains impressive gross profit margins of 94% and has shown strong financial health with a "GOOD" overall rating.
The upgrade comes as Wolfe Research projects Broadstone can achieve mid-single-digit earnings growth in 2026, according to the firm’s research note.
The $19 price target represents a potential 27% total return including dividends, with the stock currently offering a 7% dividend yield.
Wolfe Research’s price target assumes Broadstone will trade at 12.5x 2026 earnings, reflecting a 35% discount to the firm’s REIT coverage on 2025 headline earnings, which aligns with the company’s historical average discount.
The research firm noted a positive meeting with Broadstone’s management at NAREIT in June, where executives discussed the company’s growth strategy and outlook.
In other recent news, Broadstone Net Lease reported first-quarter earnings that aligned with expectations, maintaining its full-year earnings forecast. The company has expanded its build-to-suit development program, adding three new projects worth approximately $61.4 million, including industrial distribution warehouses and a grocery store. Analysts from JMP Securities have reiterated a Market Outperform rating and a $21.00 price target, citing Broadstone’s expanding development pipeline and effective management of tenant credit issues. BMO Capital Markets also reaffirmed an Outperform rating with a $20.00 price target, highlighting the company’s goal to secure an additional $500 million in build-to-suit projects this year. Broadstone’s strategy to diversify its investment approach and enhance the weighted average lease term has been noted positively by analysts. The company has been transparent about its dealings with financially challenged tenants like At Home, with minimal expected impact on the bottom line. Broadstone’s distinct development strategy is seen as pivotal for narrowing its current valuation gap.
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