Wunderlich Securities Raises Price Target On Agree Realty As Stock Keeps Accretively Growing

In a report published Tuesday, Wunderlich Securities analyst Craig Kucera reiterated a Buy rating on

, and raised the price target from $34.00 to $38.00. In the report, Wunderlich Securities noted, “We are updating our earnings model and valuation on Agree Realty (ADC) following a 4Q14 equity offering and record acquisition volume for the quarter ($72mm). Our 4Q14 FFO estimate is declining from $0.57 to $0.55 while our FY15 FFO estimate is increasing from $2.36 to $2.44. We are also raising our price target from $34 to $38 given increased NOI expectations and a 25bp reduction in our cap rate assumption for the portfolio (to 6.75%) given recent downward movement in long-term interest rates. The ADC business model remains quite attractive in our opinion as 8%+ cap rate acquisitions (and higher yielding developments) are considerably above an estimated 6.5% cost of capital; as such, NAV accretion is consistent.” Agree Realty closed on Monday at $35.22.