Netstreit stock rating upgraded by BofA Securities on strong results

Published 28/07/2025, 12:04
Netstreit stock rating upgraded by BofA Securities on strong results

Investing.com - BofA Securities upgraded Netstreit Corp . (NYSE:NTST) from Underperform to Neutral on Monday, while raising its price target to $19.00 from $18.00. The stock, currently trading at $18.39, has shown strong momentum with a 30% gain over the past six months, according to InvestingPro data.

The upgrade follows Netstreit’s strong quarterly results and recent forward equity raise, which BofA Securities indicates provides the company with sufficient investment spread between quality acquisitions and its weighted average cost of capital to accelerate external growth.

Netstreit reported second-quarter investment volume of $117 million at a 7.8% cash yield, alongside disposition volume of $60 million at a 6.5% cash yield, demonstrating improved capital allocation efficiency.

BofA Securities expects the third quarter to be another elevated disposition quarter as Netstreit continues to curate its portfolio to minimize outsized tenant or industry exposure.

The firm’s new $19 price target reflects a 14.0x AFFO multiple on forward 12-month AFFO, with BofA Securities projecting that AFFO growth will accelerate into 2026 as the company utilizes its forward equity raise as the primary funding source.

In other recent news, Netstreit Corp reported its second-quarter 2025 earnings, presenting a mixed financial outcome. The company disclosed an earnings per share (EPS) of $0.04, which was below the projected $0.06, resulting in a 33.33% miss. On a positive note, revenue exceeded expectations, coming in at $45.16 million compared to the anticipated $44.12 million, marking a 2.36% surprise. These results highlight the company’s ability to surpass revenue forecasts, despite falling short on EPS. The earnings announcement drew attention from investors, reflecting the company’s ongoing financial developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.