Gaming and Leisure stock rating reiterated at Market Outperform by JMP

Investing.com - JMP Securities has reiterated its Market Outperform rating and $55.00 price target on Gaming and Leisure Properties (NASDAQ:GLPI), citing the company’s large forward commitment pipeline and prudent balance sheet management. The stock, currently trading at $47.18 with a market capitalization of $13.74 billion, appears undervalued according to InvestingPro analysis, which shows multiple positive indicators including consistently low price volatility.

The firm highlighted a recently announced credit facility amendment by Bally’s (NYSE:BALY) that has paved the way for an anticipated sale-leaseback transaction with GLPI. This transaction could provide capital for Bally’s growth projects and leverage reduction while allowing GLPI to add another quality asset with a reliable tenant. GLPI’s strong financial position is evident in its current ratio of 3.02, indicating robust liquidity to support such transactions.

JMP noted that the existing transaction timeline, with GLPI holding an option, is currently set to commence in Fall 2026. The potential sale-leaseback, combined with existing commitments, takes GLPI’s expected deployment to approximately $2.9 billion over eight quarters, with yields exceeding 8%.

The research firm emphasized that GLPI’s portfolio continues to perform well with long-term, durable, cycle-tested cash flows, while its low-leveraged balance sheet provides ample flexibility for future growth. The company maintains an attractive dividend yield of 6.61% and has received a "GREAT" overall financial health score from InvestingPro, which offers comprehensive analysis and additional insights through its detailed Pro Research Reports covering over 1,400 US stocks.

JMP views GLPI’s valuation as attractive, with shares trading at approximately 12 times 2025 estimated AFFO per share, about 1.5 times below the net-lease REIT sector average.

In other recent news, Gaming and Leisure Properties announced its second-quarter 2025 earnings, surpassing earnings per share (EPS) expectations with a reported EPS of $0.79 against a forecast of $0.75. Despite this positive earnings surprise, the company’s revenue slightly missed projections, coming in at $394.9 million compared to the anticipated $396.97 million. Additionally, Gaming and Leisure Properties has priced a $1.3 billion public offering of senior notes through its operating partnership, GLP Capital, L.P., and subsidiary GLP Financing II, Inc. The offering includes two tranches of senior notes due in 2033 and 2037, with coupons of 5.250% and 5.750%, respectively. The proceeds from this debt issuance are intended to address early-2026 maturity and support loan and construction commitments. Furthermore, JMP Securities has reiterated its Market Outperform rating on Gaming and Leisure Properties with a $55.00 price target. This target is based on approximately 14 times the current year’s earnings, following the company’s recent financial activities. These developments reflect ongoing strategic financial maneuvers by Gaming and Leisure Properties to support growth and stability.

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