Realty Income: UBS Maintains Buy, Raises PT to $66 from $62

Realty Income: UBS Maintains Buy, Raises PT to $66 from $62

Realty Income (NYSE: O) received a Buy rating from RBC Capital analyst Anke Reingen, who also raised the price target to $66 from $62 [1].

The analyst maintained a positive outlook on the real estate investment trust (REIT), citing its strong balance sheet, steady dividend growth, and long-term growth prospects. Reingen highlighted Realty Income's ability to increase its monthly dividend, which has been increased 131 times since its IPO in 1994. The REIT's long-term net leases provide durable cash flow, and its elite balance sheet and strong excess free cash flow after paying dividends offer ample financial flexibility for continued growth.

Realty Income's portfolio of high-quality properties leased to leading companies provides a significant growth runway, with over $14 trillion of real estate suitable for net leases across the U.S. and Europe. The REIT's monthly dividend currently yields over 5.5%, making it an attractive option for income-focused investors.

The analyst's positive outlook on Realty Income aligns with the company's strong fundamentals and growth prospects. However, investors should consider the broader market conditions and their own risk tolerance before making investment decisions.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/UBS/pressreleases/34171520/rbc-capital-sticks-to-its-buy-rating-for-ubs-group-ag-ubs/