Agree Realty (ADC) PT, Estimates Trimmed at Compass Point

November 26, 2013 8:31 AM EST Send to a Friend
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Price: $33.03 --0%

Rating Summary:
    5 Buy, 1 Hold, 0 Sell

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Today's Overall Ratings:
    Up: 8 | Down: 22 | New: 20
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Compass Point reiterated a Buy rating but trimmed its price target on Agree Realty (NYSE: ADC) from $36 to $35 following the company's recent equity raise.

"ADC's recently announced common equity raise helps fund the Company's rapid expansion, lowers balance sheet leverage, and increases the float and liquidity of the stock," analyst Wilkes Graham said. "However, ADC priced the offering at $29.55, an 18.8% discount to our previous $36.39 NAV estimate which is dilutive despite our expectation that ADC will use the proceeds from the deal to fund acquisitions at accretive cap rates. Our $35.00 price target represents 24% total return from current levels and we think the Company is poised to significantly grow NAV through accretive acquisitions despite the short term dilution from the raise."

The firm is lowering 2013 and 2014 FFO estimate to $2.05 and $2.27 from $2.09 and $2.29, respectively, and raising 2015 estimate to $2.72 from $2.61. They are lowering 2013 and 2014 AFFO estimates to $2.09 and $2.31 from $2.13 and $2.34, respectively. They are increasing 2015 AFFO estimate to $2.77 from $2.66.

For an analyst ratings summary and ratings history on Agree Realty click here. For more ratings news on Agree Realty click here.

Shares of Agree Realty closed at $29.50 yesterday.

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