Realty Income, Netstreit upgraded, Agree Realty, GLPI downgraded at Mizuho (NYSE:O)

Mizuho Securities analyst Haendel St. Juste has Upgraded Realty Earnings (NYSE:O) and Netstreit (NYSE:NTST) every to Purchase from Impartial on the idea of the retail REITs’ engaging valuation and stronger-than-expected earnings progress.

Juste laid out quite a lot of catalysts that might be a boon for the broader triple internet REIT subsector heading into 2024, together with enhancing weighted-average value of capital (“WACC”) tailwinds, in addition to capital rotation into long-duration.

O and NTST superior 0.6% and 1.4%, respectively, in premarket buying and selling.

The analyst additionally sees the potential for earnings upside ought to charges stabilize and/or decline. U.S. Treasury yields already fell markedly since peaking out in October.

“Additional, cap charges proceed to broaden and sale leasebacks stay a beautiful possibility for a lot of tenants within the present setting. Lastly, tenant bankruptcies have materialized lower than initially anticipated,” Juste wrote in a be aware.

On the opposite facet of the fence, Juste downgraded Agree Realty Corp. (NYSE:ADC) and Gaming and Leisure Properties (NASDAQ:GLPI) to Impartial from Purchase, citing “elevated WACCs and comparatively full valuation.”

ADC and GLPI slipped 0.5% and 0.9%, respectively.