Broadstone Net Lease Upgraded to Overweight by KeyBanc Amid Improved Development Pipeline

KeyBanc upgraded Broadstone Net Lease (BNL) to Overweight from Sector Weight with a $20 price target. The upgrade is based on the company's accretive transaction activity and its expansion of the build-to-suit development pipeline with better than expected execution.

KeyBanc has upgraded Broadstone Net Lease (BNL) to Overweight from Sector Weight, setting a new price target of $20.00. The upgrade is based on the company's accretive transaction activity and its expansion of the build-to-suit development pipeline, which has shown better-than-expected execution [1].

The upgrade reflects KeyBanc's positive assessment of Broadstone's strategic portfolio repositioning. Over the past year, Broadstone has disposed of $366 million in assets, primarily clinical healthcare properties, reducing its exposure to these assets to approximately 2.4% of its portfolio [3]. The company has reinvested the proceeds into core industrial, retail, and build-to-suit investments, aligning with its long-term strategy and maintaining AFFO per share growth throughout the transition [3].

KeyBanc noted that the resulting asset mix now reflects a more traditional net lease portfolio, reducing uncertainty and enhancing clarity for investors. This repositioning strategy has been positively received by analysts, with four out of the six analysts covering BNL providing bullish ratings in the last three months [2].

Despite the mixed Q2 2025 earnings report, with earnings per share (EPS) falling short of expectations and revenue exceeding projections, the company's overall financial health remains strong. Broadstone's gross profit margin stands at 94.51%, indicating robust operational performance [3].

The upgrade by KeyBanc signals a positive outlook for Broadstone Net Lease, with analysts' price targets ranging from $16.00 to $21.00, averaging $18.25 [2]. This suggests a consensus among analysts that the company's strategic repositioning and strong financial performance are likely to drive future growth.

References:
[1] https://www.tipranks.com/news/the-fly/broadstone-net-lease-upgraded-to-overweight-from-sector-weight-at-keybanc-thefly
[2] https://www.benzinga.com/insights/analyst-ratings/25/08/47164274/what-analysts-are-saying-about-broadstone-net-lease-stock
[3] https://www.investing.com/news/analyst-ratings/keybanc-upgrades-broadstone-net-lease-stock-rating-to-overweight-on-portfolio-repositioning-93CH-4199142