Cantor Fitzgerald initiates Broadstone Net Lease stock with Overweight rating

Investing.com - Cantor Fitzgerald initiated coverage on Broadstone Net Lease (NYSE:BNL) Wednesday with an Overweight rating and a $21.00 price target, representing potential upside of 15.9% from the current price of $17.87. The stock is trading near its 52-week high of $19.00, according to InvestingPro data.

The research firm’s price target is based on a 2026 estimated AFFO multiple of 13.5x, which is in line with the 13.6x average for property sector peers. The company currently trades at a P/E ratio of 34.28x while offering an attractive dividend yield of 6.49%.

Cantor Fitzgerald highlighted Broadstone’s recent healthcare portfolio simplification strategy, which reduced the company’s higher tenant credit risk healthcare exposure from 9.7% to 2.4% of ABR.

The firm noted that Broadstone’s improved portfolio, combined with a sector-low 11.8x 2026 EBITDA multiple, positions the company attractively in the market.

Broadstone is on track to meet its goal of announcing $500 million of build-to-suit developments in 2025, and its recovering stock price could soon enable the company to access equity capital markets to fuel acquisition growth. With a solid current ratio of 1.9x, the company maintains strong liquidity to support its expansion plans.

In other recent news, Broadstone Net Lease, Inc. completed a significant financial maneuver by closing a $350 million public offering of senior unsecured notes due in 2032, with an interest rate of 5.0%. This offering, fully guaranteed by Broadstone Net Lease, Inc., is expected to support the company’s expanding deployment pipeline. Analysts have taken note of this development, with KeyBanc reiterating an Overweight rating and a $20.00 price target, expressing confidence in the company’s long-term strategy. JMP Securities also reiterated a Market Outperform rating and a $21.00 price target, highlighting the senior notes offering as a strategic funding move. The recent investor meetings with Broadstone’s executives, including CEO John Moragne and CFO Kevin Fennell, have further reinforced analyst confidence. Management’s decision to increase its deployment midpoint by $100 million for 2025 signals an active year ahead for investments. This financial strategy aligns with the company’s efforts to drive future growth and sustain its development pipeline.

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