Demand for 5G internet speeds and for places to mount 5G hardware should continue, the analysts say:
AMT is a major beneficiary of 5G rollout. Meanwhile, the recent CoreSite acquisition is less dilutive than expected and gives exposure to data centers segment, improving international churn dynamics and defensive cash flows, in a market of increasing uncertainty/volatility. There also remains potential upside from acquisitions (e.g. New Zealand).
Ventas
Ventas Inc. (NYSE: VTR) is a health care facility REIT with some 1,200 properties. Credit Suisse has given this stock an Outperform rating and a price target of $63. At a share price of around $49, the upside potential is 28.6%.
Credit Suisse touted the company’s senior housing operating portfolio (SHOP), commenting that “SHOP recovery should be a significant driver of earnings growth over the next 12- 48 months.”
NexPoint Residential Trust
NexPoint Residential Trust Inc. (NYSE: NXRT) acquires, owns and operates “well-located” multifamily properties for middle-income families in large cities and suburbs located primarily in the U.S. Southwest and Southeast. The stock was given an Outperform rating and a price target of $72. At a share price of around $59, the potential upside on the shares is 21.7%.
Credit Suisse likes the location of this apartment REIT in the U.S. sunbelt:
Exposure to the attractive combination of Sunbelt markets and workforce housing, combined with a highly profitable remodeling pipeline, suggests NXRT continues to lead the sector in regards to SS NOI [same store net operating income] as well as FFO/sh [funds from operation per share] growth.
SS NOI was up 16.4% year over year in the March quarter and FFO/sh rose from $0.55 to $0.74 per diluted share year over year.
Brixmor Property
Brixmor Property Group Inc. (NYSE: BRX) owns and operates 395 U.S. open-air shopping centers. Credit Suisse’s analysts have an Outperform rating on the stock with a $23 price target. At a share price of around $20, the potential upside is 16.6%.
In a comment on the stock, the analysts note:
Years of portfolio repositioning should continue to bear fruit in the form of attractive mark to market on both new and renewal leasing, with [the added benefit of] potential upside from [new leases to small shop owners].
Originally posted at 24/7 Wall St.
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