Goldman Sachs upgrades Broadstone Net Lease stock rating to Buy on growth

Published 21/08/2025, 08:28
Goldman Sachs upgrades Broadstone Net Lease stock rating to Buy on growth

Investing.com - Goldman Sachs upgraded Broadstone Net Lease (NYSE:BNL) from Sell to Buy and raised its price target to $21.00 from $14.00 on Thursday. The company, which maintains a "GOOD" overall financial health score according to InvestingPro, currently trades at $17.39.

The upgrade reflects Goldman’s confidence in Broadstone’s management following the successful disposition of its healthcare portfolio. The investment bank also cited visible earnings growth from the company’s build-to-suit development pipeline.

Goldman Sachs believes Broadstone’s improved cost of equity will drive further earnings growth through accretive acquisitions. The firm noted that potential credit risks are "well-known and minimal."

The investment bank’s 2026 and 2027 AFFO per share estimates exceed FactSet consensus by 1.8% and 6.3% respectively, projecting an average annual growth rate of 5.6%.

Broadstone currently trades at 11.5 times next-twelve-months AFFO, below both Goldman’s coverage average of 20.2 times and net lease peers at 13.9 times. The new price target represents a potential 30% total return including the 7% dividend yield.

In other recent news, Broadstone Net Lease reported mixed results for its Q2 2025 earnings. The company’s earnings per share (EPS) fell short of expectations, coming in at $0.10 compared to the forecasted $0.18, resulting in a 44.44% negative surprise. Conversely, revenue exceeded projections, reaching $112.99 million against an anticipated $110.75 million, marking a 2.02% positive surprise. In a related development, KeyBanc upgraded Broadstone Net Lease’s stock rating from Sector Weight to Overweight. This upgrade was influenced by Broadstone’s strategic portfolio repositioning, which included $366 million in asset dispositions over the past 18 months, primarily in clinical healthcare. These recent developments highlight the company’s ongoing efforts to optimize its portfolio and financial performance.

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