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Investing.com - Gaming and Leisure Properties (NASDAQ:GLPI) has been downgraded from Buy to Hold by Stifel, with its price target reduced to $51.25 from $57.50. The company, currently trading at $47.70, maintains impressive gross profit margins of 93.38% and offers a substantial dividend yield of 6.54%. InvestingPro analysis shows the company maintains a GREAT financial health score.
The downgrade comes as Stifel analyst Simon Yarmak cited concerns about the company’s growth trajectory, particularly following delays in Bally’s Chicago flagship project and other guidance considerations.
Stifel now forecasts a growth CAGR for 2024-2026 of only 2.8% for Gaming and Leisure Properties, compared to the industry group average of 3.4% and competitor VICI Properties ’ (NYSE:VICI) 3.7%.
This represents a significant reduction from Stifel’s previous forecast, which had projected a 2024-2026 growth CAGR of 4.5% for Gaming and Leisure Properties, compared to the group average of 3.4% and VICI Properties at 2.1%.
According to Stifel, "investors need some more clarity on the timing of some of the pending/potential investments to be more comfortable with the story and be more constructive on the name." Despite growth concerns, InvestingPro analysis suggests the stock is currently trading below its Fair Value, with additional insights available in the comprehensive Pro Research Report.
In other recent news, Gaming and Leisure Properties, Inc. reported its first-quarter 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $0.60, missing the forecasted $0.73, and revenue slightly below expectations at $395.2 million. Despite this, Stifel analysts have maintained a Buy rating for the company, citing positive future growth potential and strategic project developments. Gaming and Leisure Properties also announced an increase in its quarterly cash dividend to $0.78 per share, up from the previous $0.76, reflecting a 2.6% increase from the second quarter of 2024. Furthermore, the company decided to eliminate the position of Senior Vice President and Chief Investment Officer, leading to the departure of Matthew J. Demchyk, with a severance package totaling $6,250,000. The company is also investing $130 million in the Juliette project, expected to impact the latter half of 2025, while funding for the Aurora project is slated for 2026. These developments indicate Gaming and Leisure Properties’ ongoing strategic initiatives and financial maneuvers.
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