Citizens JMP Reiterates Market Outperform Rating on Gaming and Leisure (GLPI)

Citizens JMP analyst Mitch Germain reiterated a Market Outperform rating and $55.00 price target on Gaming and Leisure (NASDAQ: GLPI).

The analyst commented, "We view Gaming and Leisure Properties’ large forward commitment pipeline, set to have meaningful positive bottom-line impact, in a favorable light, while the company’s balance sheet has been prudently managed to support such deployment; maintain our Market Outperform rating and $55 price target (14x current year earnings). A recently announced credit facility amendment by Bally’s (NYSE: BALY, MP) has paved the way for an anticipated sale-leaseback with GLPI, with pre-negotiated terms. The capital from this transaction could support Bally’s growth projects/ leverage reduction, while GLPI could add another quality asset to its roster, with a reliable tenant. The existing transaction timeline, with GLPI possessing an option, currently commences in the Fall of 2026. The sale-leaseback, coupled with existing commitments takes GLPI’s expected deployment to roughly $2.9B over the 8 quarters; yields are 8%+. Simultaneously, the portfolio, with long term, durable, cycle-tested cash flows, continues to perform well, while a low-levered balance sheet provides ample flexibility. We view the valuation as attractive, with shares trading at ~12x 2025E AFFO/share, about 1.5x below the net-lease REIT sector average."

For an analyst ratings summary and ratings history on Gaming and Leisure click here. For more ratings news on Gaming and Leisure click here.

Shares of Gaming and Leisure closed at $47.18 yesterday.

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