Wunderlich Securities Adjusts Estimates For 2Q14 Acquisitions For Agree Realty

In a report published Wednesday, Wunderlich Securities analyst Craig Kucera reiterated a Buy rating and $34.00 price target on Agree Realty (NYSE: ADC).

In the report, Wunderlich Securities noted, “We are reducing our FY14 AFFO estimate by $0.01 given a more modest ($12.5mm vs. $16.7mm) acquisition volume than expected for Agree Realty (ADC) in 2Q14 but we are maintaining our annual acquisition estimate in the $75mm+ range; as such, our FFO estimates for the company are unchanged. ADC continues to maintain considerable balance sheet potential while acquiring single tenant retail assets occupied by investment grade tenants.

"Our $34 price target values ADC at an in-line (13.5x) 2015 AFFO multiple and a discount to our NAV and DCF valuations in the ~$35 range. The market is not differentiating for ADC's quality tenant base or underlevered balance sheet and incremental acquisition potential; as such, we maintain our Buy rating.”

Agree Realty closed on Tuesday at $30.54.