Stifel upgrades EPR Properties stock rating on growth outlook

Investing.com - Stifel upgraded EPR Properties (NYSE:EPR) stock rating from Hold to Buy on Friday, while raising its price target to $65.00 from $52.00. The stock, currently trading at $57.17, has shown impressive momentum with a 35.84% return over the past six months and is approaching its 52-week high of $57.72.

The upgrade follows Stifel analyst Simon Yarmak’s extensive visit to EPR’s corporate headquarters, where the team met with various departments within the organization.

Stifel cited improvements in EPR’s share price and cost of capital as key factors that could enable the company to "once again return to reasonable external growth."

The firm also noted that fundamentals in the theater industry continue to improve, with percentage rent expected to be "a tailwind to earnings over the next several years."

Stifel’s new $65 price target reflects a 12.0 multiple on the firm’s 2027 estimated FFO (funds from operations) for the real estate investment trust.

In other recent news, EPR Properties has reported strong financial results for the first quarter of 2025, exceeding analyst expectations. The company achieved earnings per share of $0.78, surpassing the forecasted $0.61, and reported revenue of $175 million, compared to the expected $142.4 million. EPR Properties increased its 2025 Funds From Operations (FFO) as adjusted guidance to a range of $5.00-$5.16 per share, reflecting confidence in sustained growth. Stifel analysts have maintained a Hold rating on EPR Properties, citing the unpredictability of percentage rents as a factor. The company’s recent investments include experiential assets like Diggerland USA and private golf clubs, contributing to its diversified portfolio. EPR Properties’ management projects over 3% growth for the fiscal year 2026, driven by increased AMC rent and improved box office performance. Despite these positive developments, challenges such as refinancing impacts and variable percentage rents remain.

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