UPDATE: BMO Capital Downgrades STORE Capital (STOR) to Underperform

BMO Capital analyst Frank Lee downgraded STORE Capital (NYSE: STOR) from Market Perform to Underperform with a price target of $29.00.

The analyst comments "We downgrade STOR to Underperform and decrease our target price to $29, on the back of an increasingly challenging macro environment which may impact STOR's earnings growth. While '22 AFFO growth is attractive, we believe STOR's lower-quality portfolio is evidenced with a lower current cash yield on its portfolio vs. reported cap rates (-38bps) and vs. peers WPC and BNL which have higher yields (+162/+216 bps), indicating organic growth. In the event the US economy heads toward a recession, STOR may see lower rent collections, as it did in 2020."

For an analyst ratings summary and ratings history on STORE Capital click here. For more ratings news on STORE Capital click here.

Shares of STORE Capital closed at $30.80 yesterday.

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