Agree Realty Is A 'Net Winner' In A Challenging Macro, Says Analyst

Shares of Agree Realty Corporation (NYSE: ADC) maintained a downward trajectory in early trading on Thursday and are down more than 8% year to date.

The recent selloff in Agree Realty’s stock offers “an attractive entry point” into a REIT that has “high investment-grade tenancy, formidable liquidity, and above-average growth potential,” according to Mizuho Securities.

The Agree Realty Analyst: Haendel St. Juste upgraded the rating for Agree Realty from Neutral to Buy, while keeping the price target unchanged at $70.

The Agree Realty Thesis: The company can be “a net winner” against the challenging macro and higher capital cost environment since it has the ability to play “both sides of the ball,” Juste said in an upgrade note.

Check out other analyst stock ratings.

“To be clear, ADC’s high-credit tenancy and well-positioned balance sheet offer 'defense,' while its formidable liquidity/advantaged access to capital allows it to also play 'offense' and ramp up acquisitions, especially as competition remains subdued, and with cap rates poised to rise further, driving wider spreads,” the analyst wrote.

After the Federal Reserve’s recent commentary, interest rates are likely to “remain elevated going forward,” and Agree Realty is “better built than most to navigate higher for longer macro,” he added.

ADC Price Action: Shares of Agree Realty had declined by 0.92% to $65.73 at the time of publishing Thursday.

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