Barclays upgrades Gaming and Leisure Properties to Overweight, citing strong earnings potential.

Gaming and Leisure Properties has been upgraded to Overweight from Equalweight at Barclays. The REIT's stock has underperformed its net lease peers, but earnings are poised to exceed consensus estimates. Barclays expects GLPI's earnings to beat estimates, which could boost its stock performance.

Barclays has upgraded Gaming and Leisure Properties (GLPI) to Overweight from Equalweight, citing the REIT's potential for earnings growth and undervaluation. The stock has underperformed its net lease peers, but Barclays expects GLPI's earnings to beat consensus estimates, which could boost its stock performance.

According to Barclays analyst Richard Hightower, GLPI's stock has dipped 3% year-to-date (as of Friday), compared to a 13% rise for net lease stocks overall. Hightower noted that GLPI's earnings are well positioned to exceed consensus estimates, with incremental earnings contributions expected from ongoing developments and recent acquisitions. Specifically, the Chicago development funding, Caesars Republic Sonoma, and the Sunland Park acquisition are expected to contribute to GLPI's earnings growth in 2026, according to a Seeking Alpha report.

Barclays' Overweight rating aligns with the average SA Analyst rating and the average Wall Street rating, both at Buy. The upgrade comes as GLPI shares have declined approximately 4% over the past two months, underperforming the Net Lease average by roughly 400 basis points. The stock offers a substantial 6.96% dividend yield and demonstrates low volatility with a beta of 0.75, making it potentially attractive for income-focused investors, as noted in an Investing.com article.

Key factors driving the upgrade include improving conditions for Bally’s, which represents about 17% of GLPI’s annualized base rent. Recent positive developments for Bally’s include obtaining partial lender consent to sell its Lincoln, Rhode Island asset to GLPI and completing the sale of its international interactive business to Intralot. Additionally, GLPI has announced its acquisition of the real estate assets of Sunland Park Racetrack & Casino for $183.75 million, with the transaction expected to close in October 2025, a detail also reported by Investing.com.

GLPI shares rose 1.2% in midday trading on Monday following the upgrade. The company's strategic initiatives and financial management are highlighted by JMP Securities' Market Outperform rating and Cantor Fitzgerald's Neutral rating with a $51.00 price target, according to the Investing.com coverage.