Lucid Capital Markets Starts NewLake Capital Partners Inc. (NLCP) at Neutral

Lucid Capital Markets analyst Craig Kicera initiates coverage on NewLake Capital Partners Inc. (OTC: NLCP) with a Neutral rating and a price target of $14.00.

The analyst comments "We are initiating coverage of NewLake Capital Partners, Inc. (NLCP - OTC) with a Neutral rating and a $14 price target. NLCP provides real estate capital to state-licensed cannabis operators and currently owns a portfolio of 33 properties totaling 1.6 million square feet, leased to 13 tenants. Leverage is negligible (at 0.2x debt/EBITDA), the 13.5% dividend yield is forecast to be covered by AFFO through 2026, and several potential federal legislative catalysts could materially improve NLCP’s tenant operations. However, many cannabis operators are struggling with profitability due to structural issues and oversupply and face sizable debt maturities in 2026. Our $14 price target represents 69% of our $20.15 NAV estimate, which compares to NLCP’s peer group of cannabis REITs trading at 59% of NAV. On an earnings multiple basis, our $14 price target is 7x our 2025E FFO estimate vs. NLCP’s cannabis REIT peer group trading at 7x."

For an analyst ratings summary and ratings history on NewLake Capital Partners Inc. click here. For more ratings news on NewLake Capital Partners Inc. click here.

Shares of NewLake Capital Partners Inc. closed at $12.70 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Phillips 66, Marathon Merger Talks Collapsed - Semafor
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy