UPDATE: JMP Securities Starts Spirit Realty Capital (SRC) at Market Outperform

JMP Securities analyst Mitch Germain initiates coverage on Spirit Realty Capital (NYSE: SRC) with a Market Outperform rating and a price target of $54.00.

The analyst comments "We commend the management team on completing a multi-year upgrade to the operating portfolio and balance sheet. Over the last five years, the company has better diversified cash flows by reducing tenant and industry concentrations, grown both industrial and investment-grade exposures, and materially improved the balance sheet by expanding the pool of unencumbered properties and lowering net debt/EBITDA by over one turn. Liquidity levels support the ability to meet Spirit’s recently upsized deployment guidance. Further, asset sales appear to be an attractive capital raise alternative, as management suggested a 150-200bps positive spread on redeployment, while supporting asset valuations which encompass the NAV. Overall, we believe the current valuation, on a relative and absolute basis, fails to recognize portfolio and balance sheet upgrades, and we are buyers of the shares."

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

Shares of Spirit Realty Capital closed at $39.79 yesterday.

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