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UPDATE: Compass Point Reiterates Buy Rating, Raises PT on Agree Realty Corporation

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In a report published Friday, Compass Point Research & Trading reiterated its Buy rating on Agree Realty Corporation (NYSE: ADC), and raised its price target from $28.00 to $31.00.

Compass Point noted, “We reiterate our Buy rating on shares of ADC and are raising our price target to $31 from $28. We recently took ADC management to NYC and Boston to meet with 12 investors over two days, and we walked away with two main takeaways: (1) it's becoming very difficult to find acquisitions above an 8% cap rate given the frothiness of the market and (2) ADC has a real competitive advantage in the triple net REIT space given its development acumen and relationships and what we believe is an ability to sustainably develop $20-$25M/yr going forward. Our $3/share increase in our price target is a result of an additional $2.50/share of future value creation from developments and $0.50 of additional NAV accretion via a 10 bps drop in our assumed cap rate following the disposal of high-cap rate assets. We also believe that the dividend is set to grow 5-15% over the next year or so as 10%+ yielding developments hit the income statement.”

Agree Realty Corporation closed on Thursday at $26.56.

Latest Ratings for ADC

DateFirmActionFromTo
Mar 2015BairdInitiates Coverage onOutperform
Jan 2015WunderlichMaintainsBuy
May 2014WunderlichUpgradesHoldBuy

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Posted-In: Compass Point Research & TradingAnalyst Color Price Target Analyst Ratings

 

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