KeyBanc upgrades Broadstone Net Lease stock rating to Overweight on portfolio repositioning

Investing.com - KeyBanc upgraded Broadstone Net Lease (NYSE:BNL) from Sector Weight to Overweight on Tuesday, setting a price target of $20.00. The company, with a market capitalization of $3.28 billion, has demonstrated strong financial health according to InvestingPro data, maintaining an impressive 94.51% gross profit margin.

The upgrade follows Broadstone’s strategic portfolio repositioning efforts over the past year, which included $366 million in dispositions over the past 18 months, primarily consisting of clinical healthcare assets.

These dispositions have reduced Broadstone’s clinical and surgical exposure to approximately 2.4% of its portfolio, down from 9.7% at the end of 2023, according to KeyBanc’s analysis.

The company has reinvested proceeds into core industrial, retail, and build-to-suit investments that align with its long-term strategy, while maintaining AFFO per share growth throughout the transition.

KeyBanc noted that the resulting asset mix now reflects a more traditional net lease portfolio, which reduces uncertainty and enhances clarity for investors.

In other recent news, Broadstone Net Lease reported mixed results for its Q2 2025 earnings. The company experienced a notable divergence between its earnings per share (EPS) and revenue performance. Broadstone Net Lease’s EPS fell short of expectations, coming in at $0.10 compared to the forecasted $0.18, which represents a 44.44% negative surprise. In contrast, the company’s revenue exceeded projections, reaching $112.99 million against an anticipated $110.75 million, resulting in a 2.02% positive surprise. These recent developments highlight the complex financial landscape the company is navigating.

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