FBR Capital Downgrades National Retail Properties (NNN) to Market Perform

March 10, 2014 6:32 AM EDT
Get Alerts NNN Hot Sheet
Price: $46.13 +2.31%

Rating Summary:
    9 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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FBR Capital downgraded National Retail Properties (NYSE: NNN) from Outperform to Market Perform and maintained a price target of $36.00.

Analyst Daniel Altscher notes since its upgrade mid August 2013, the stock has seen a total return of about +15% between stock appreciation and dividends vs. +13.7% for the S&P 500 Index. Also, on a a year-to-date basis, the stock is +15% vs. +1.6% for the S&P 500 Index. He said, "As we sit here today, we think the stock is more appropriately valued at over 17x our 2014E FFO of $2.04. This is particularly the case given that we have already taken the liberty of increasing our 2014E FFO above guidance to a level that we think is more representative of where it could actually shake out by year-end. With the upside scenario baked into our forecasts, we presently do not see enough meaningful upside to the stock at the current valuation to warrant an Outperform rating. Fundamentally, we still think there is a lot to like about the National Retail Properties story, and if the stock pulled back to a valuation that we thought was attractive like we did in August 2013, we could potentially look to become more constructive on the name."

For an analyst ratings summary and ratings history on National Retail Properties click here. For more ratings news on National Retail Properties click here.

Shares of National Retail Properties closed at $34.14 yesterday.

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