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Investing.com - Wells Fargo upgraded W. P. Carey & Co. (NYSE:WPC) from Equal Weight to Overweight on Thursday, setting a price target of $72.00.
The upgrade reflects W. P. Carey’s successful strategy of rotating out of operating storage assets at sub-6% capitalization rates while making new acquisitions at mid-7% yields, creating more favorable returns.
Wells Fargo noted that W. P. Carey’s current acquisition pace suggests investments should meet or exceed the high end of the company’s guidance.
The firm highlighted that Europe continues to provide W. P. Carey with more attractive spread investing opportunities compared to other markets.
Wells Fargo also pointed to two additional positive factors: W. P. Carey’s cost of equity approaching levels that could allow management to secure funding for 2026, and the company’s continuously improving credit profile. The company maintains a healthy liquidity position with a current ratio of 1.72, while analyst price targets range from $60 to $75.
In other recent news, W. P. Carey Inc. reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.23, which was significantly below the forecasted $0.63. This marked a 63.49% negative surprise. However, the company exceeded revenue expectations, reporting $430.78 million against a forecast of $401.17 million, resulting in a 7.38% positive surprise. Additionally, W. P. Carey announced it has completed additional investments totaling $250.8 million since its second-quarter earnings release. This brings its year-to-date investment volume to approximately $1.3 billion. The recent investments primarily consist of single-tenant industrial properties located in North America and Europe. These developments indicate the company’s continued expansion efforts despite the earnings per share shortfall.
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