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UPDATE: Compass Point Reiterates on Agree Realty on Model Update Following Equity Raise

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In a report published Tuesday, Compass Point analyst Wilkes Graham reiterated a Buy rating on Agree Realty Corporation (NYSE: ADC), but lowered the price target from $36.00 to $35.00.

In the report, Compass Point noted, “We are reiterating our Buy rating and lowering our price target to $35.00 from $36.00. ADC's recently announced common equity raise helps fund the Company's rapid expansion, lowers balance sheet leverage, and increases the float and liquidity of the stock. However, ADC priced the offering at $29.55, an 18.8% discount to our previous $36.39 NAV estimate which is dilutive despite our expectation that ADC will use the proceeds from the deal to fund acquisitions at accretive cap rates. Our $35.00 price target represents 24% total return from current levels and we think the Company is poised to significantly grow NAV through accretive acquisitions despite the short term dilution from the raise.”

Agree Realty closed on Monday at $29.50.

Latest Ratings for ADC

DateFirmActionFromTo
Oct 2016FBR CapitalInitiates Coverage OnOutperform
Jul 2016JefferiesMaintainsBuy
Jul 2016Stifel NicolausInitiates Coverage onBuy

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Posted-In: Compass Point Wilkes GrahamAnalyst Color Price Target Analyst Ratings

 

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