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Investing.com - Stifel has reiterated its Buy rating and $17.75 price target on Postal Realty Trust (NYSE:PSTL), following meetings with the company’s management team. The company, which has raised its dividend for 6 consecutive years and maintains a robust 6.2% dividend yield, currently shows a "GREAT" Financial Health score according to InvestingPro analysis.
The research firm attributes PSTL’s recent 27.2% rally since May 1 to an improving macro environment, strong same-store NOI/AFFO growth, positive re-leasing results, and the lack of impact from DOGE on the Postal Service. This impressive performance is part of a broader upward trend, with the stock posting a 26.2% YTD return and trading near its 52-week high.
Stifel notes that Postal Realty Trust has a projected 2024-2026 AFFO growth CAGR of 8.7%, along with a well-covered 6.2% dividend yield, potentially resulting in a total return of approximately 15.0%, excluding multiple expansion.
The stock currently trades at an 8.4% implied cap rate on forward 12-month NOI and at a 20.7% discount to Stifel’s current NAV estimate of $19.75, which the firm suggests may be conservative.
Stifel reports that management has been active with external growth initiatives, and transaction volume will likely increase as the company’s share price and cost of capital continue to improve.
In other recent news, Postal Realty Trust Inc . reported strong financial results for the second quarter of 2025, surpassing analyst expectations in both earnings per share (EPS) and revenue. The company achieved an EPS of $0.12, significantly above the forecasted $0.0677, marking a surprise of 77.25%. Revenue also exceeded expectations, reaching $22.73 million compared to the forecast of $20.62 million, resulting in a 10.23% surprise. These results reflect a robust performance for the quarter. Additionally, following the announcement, the company’s stock experienced a notable increase. Analyst firms have taken note of Postal Realty’s performance, although specific upgrades or downgrades were not mentioned. These recent developments highlight Postal Realty’s financial strength and market position.
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