Stifel raises VICI Properties stock price target to $34.25

On Thursday, Stifel analysts increased the price target for VICI Properties Inc. (NYSE: NYSE:VICI) shares to $34.25, up from the previous target of $34.00, while reiterating a Buy rating on the stock. The adjustment follows VICI Properties’ announcement of a successful pricing of $1.3 billion in senior unsecured notes after market close. The stock, currently trading at $31.90, offers a 5.42% dividend yield and trades at a P/E ratio of 12.41. According to InvestingPro analysis, VICI maintains a "GREAT" financial health score of 3.54 out of 5.

VICI Properties has priced two sets of senior unsecured notes: $400 million at 4.750% due in 2028 and $900 million at 5.625% due in 2035. The 2028 notes were priced at 99.729% of their par value, while the 2035 notes were priced at 99.219% of par value. With a market capitalization of $33.7 billion, VICI maintains strong liquidity metrics, including an impressive current ratio of 21.19.

The company aims to use the proceeds from these notes to address its upcoming debt obligations. Specifically, VICI Properties plans to pay down $1.3 billion of unsecured debt that is scheduled to mature in the second quarter of 2025. These bonds represent the last of the company’s maturities for the year 2025, with the following debt maturity not occurring until September 2026.

The strategic move by VICI Properties to manage its debt maturities ahead of time has been highlighted by Stifel’s analysts. The pricing of the senior unsecured notes is seen as a proactive step in strengthening the company’s financial position and addressing future debt obligations in a timely manner.

In other recent news, VICI Properties Inc. reported mixed financial results for the fourth quarter of 2024, with earnings per share (EPS) of $0.58, which missed the forecast of $0.68. However, the company’s revenue exceeded expectations, reaching $976.1 million against a forecast of $968 million. The company has also announced the pricing of a $1.3 billion public offering of senior unsecured notes, comprising $400 million of notes due 2028 and $900 million due 2035. The proceeds from this offering will be used to repay existing indebtedness and for general corporate purposes.

Analysts at JMP have maintained a Market Outperform rating on VICI Properties, with a price target of $35.00, highlighting the company’s strategic refinancing and strong financial management. The company’s recent credit rating upgrade has facilitated more favorable terms for its latest debt issuances. VICI Properties has also been recognized for its strategic investment practices, focusing on partnerships with top experiential operators. The company’s shares are currently trading at approximately 13.4 times its estimated adjusted funds from operations (AFFO) per share for 2025, which is slightly above the average for the net-lease sector.

VICI’s investment strategy, which includes high-quality assets and accretive acquisitions, is expected to continue driving growth. This strategy is complemented by a robust income stream and clear organic growth, projected to exceed that of many of its net-lease REIT counterparts. Despite the earnings miss, the company’s consistent revenue performance and strategic initiatives have reflected positively on investor confidence.

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