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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.
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