Analysts Offer Insights on Financial Companies: Gladstone Land (NASDAQ: LAND) and Federal Realty (NYSE: FRT)

By Ryan Adsit

There’s a lot to be optimistic about in the Financial sector as 2 analysts just weighed in on Gladstone Land (NASDAQ: LAND) and Federal Realty (NYSE: FRT) with bullish sentiments.

Gladstone Land (NASDAQ: LAND)

Ladenburg analyst Daniel Donlan reiterated a Buy rating on Gladstone Land (NASDAQ: LAND) today and set a price target of $15. The company’s shares opened today at $13.41.

Donlan wrote:

“We continue to focus on external growth potential, as weak YTD internal growth seems driven by unique circumstances; reiterate BUY—Gladstone Land had a robust quarter in terms of acquisitions, closing $38.2M of transactions in 3Q’17 helping bring YTD purchases to $122.7M. Furthermore, with the completion of two follow-on offerings this year, LAND has ample runway for additional investments, with management stating on the REIT’s 3Q’17 earnings call that they had $35M of cash buying power. However, LAND’s internal growth has been weak, with average rent increases on renewals of ~1% on a YTD basis and a 12.5% decrease in rent from the two renewals completed in 3Q’17. Additionally, subsequent to quarter end, the REIT replaced a struggling tenant at one of the recently renewed farms, taking over operations via LAND’s taxable REIT subsidiary (TRS).”

According to TipRanks.com, Donlan is a 2-star analyst with an average return of 0.7% and a 59.5% success rate. Donlan covers the Financial sector, focusing on stocks such as Innovative Industrial Properties Inc, NexPoint Residential Trust Inc, and Four Corners Property Trust.

Gladstone Land has an analyst consensus of Moderate Buy, with a price target consensus of $15.

Federal Realty (NYSE: FRT)

Boenning & Scattergood analyst Floris van Dijkum assigned a Buy rating to Federal Realty (NYSE: FRT) today and set a price target of $140. The company’s shares opened today at $130.45.

van Dijkum commented:

“We are tweaking our 2018 FFO per share estimates marginally downward to $6.18, reflecting likely dispositions following the recent Primestor transaction. FRT recently issued another $175 million of 3.25% 10-year notes at tight spreads. We believe that the company is committed to maintain its below-average leverage profile and that condominium sales as well as a potential non-core Primestor asset disposition in 2018 should keep leverage at 6 six times. Leverage should trend lower in the second half of 2018 and be below 5.5 times in 2019. Our NAV per share estimate is essentially unchanged, and we continue to rate FRT Outperform for its sector-leading solid fundamentals and pristine balance sheet.”

According to TipRanks.com, Dijkum is a 3-star analyst with an average return of 2.9% and a 50.0% success rate. Dijkum covers the Financial sector, focusing on stocks such as Pennsylvania Real Estate ate Investment, Retail Properties of America Inc, and General Growth Properties Inc.

Federal Realty has an analyst consensus of Moderate Buy, with a price target consensus of $141.

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