ADC - Agree Realty cut to Market Perform at JMP on slowing earnings growth prospects
2023-03-21 08:28:03 ET
- JMP analyst Mitch Germain on Tuesday downgraded Agree Realty ( NYSE: ADC ) to Market Perform from Market Outperform on the basis of the net lease REIT's slowing earnings growth prospects.
- With ADC changing hands at a "roughly three-multiple premium to the net-lease REIT sector average (2023e AFFO), we see shares as fairly valued with little potential for further expansion," Germain wrote in a note.
- Meantime, Wall Street has lowered its expectations for the company's full-year 2023 earnings by 3.1% in the past six months, calling for funds from operations of $3.95 per share.
- That comes as ADC's deployment volumes are expected to moderate, the analyst pointed out.
- The Market Perform rating diverges from the Quant system rating and the average Wall Street analyst rating, both at Buy.
- SA contributor Harrison Schwartz flagged ADC as a Sell as the company's portfolio, although less risky than retail properties, is not recession-proof against a backdrop of growing retail sector risks .
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Agree Realty cut to Market Perform at JMP on slowing earnings growth prospects