KeyBanc Downgrades Gaming and Leisure (GLPI) to Sector Weight

KeyBanc analyst Todd Thomas downgraded Gaming and Leisure (NASDAQ: GLPI) from Overweight to Sector Weight.

The analyst comments "Downgrading GLPI to Sector Weight. We are downgrading GLPI as the stock has achieved our prior $54 price target. Notably, shares appear fairly valued at a 6.3% implied cap rate, particularly given the 50 bps implied cap rate spread vs. Gaming REIT peer VICI, which compares to ~100 bps for the one-year, two-year, and four-year historical periods (i.e., 2019 to present). We expect steady execution across the portfolio and balance sheet in the year ahead, and there could be opportunities for GLPI to deploy incremental capital at accretive spreads and accelerate AFFO growth more than anticipated, which would be positive; however, we expect shares to perform in line with the Triple Net REITs at current valuation. We are lowering our 2023 and 2024 AFFO estimates (comparable basis to management's guidance) to $3.63/sh (-$0.04/sh) and $3.72/sh (-$0.06/sh), respectively, following 4Q22 earnings as a result of a lower cash NOI run-rate vs. our prior model. We are increasing our NAV estimate to $42.69/sh."

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 $54.34 yesterday.

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