UPDATE: Bank of America Upgrades Realty Income Corporation to Buy on Stable Core and Acquisition Upside
Bank of America upgraded Realty Income Cooperation (NYSE: O) from Neutral to Buy and raised the price objective from $42.00 to $57.00.
Bank of America noted, "O is coming off a record year of acquisitions ($1.16B), as well as closing on the acquisition of ARCT in January 2013 (total transaction value of $3.1B). These acquisitions should help O generate FFO/sh growth of ~19% in 2013. While our acquisition assumption for the next ten and a half months is currently $600M, we believe there is potential for upside if O can close one or more large portfolio transactions in ‘13. Our positive bias is based on management's proven ability to execute acquisitions in ‘12, anecdotal evidence that there are currently motivated and active sellers of triple net assets, and the company's recently upsized acquisition platform."
Realty Income Corporation closed at $44.46 on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.