B.Riley FBR Sticks to Its Buy Rating for Agree Realty Corp

By Carrie Williams

In a report released today, David Corak from B.Riley FBR reiterated a Buy rating on Agree Realty Corp (NYSE: ADC), with a price target of $58. The company’s shares closed yesterday at $45.92.

Corak observed:

“Agree Realty (ADC) continues to find itself in a very unique position both within the net lease sector and the REIT space. We can’t identify too many other REITs in our coverage that are putting up 11.3% AFFO growth, doing so with 4.3x leverage, and sporting a PEG ratio (2.1 on 2018 AFFO estimates) that screens well to even the most persnickety investors. We also believe there is upside to guidance and thus consensus estimates, making those metrics all the more attractive. The portfolio itself appears healthy and is shaping up to fully capitalize on the omni- channel retail world with major additions of experiential retailers like T.J. Maxx (now 3.1% of ABR), Dave & Buster’s, and Autozone. Likewise, exposure to pharmacy dropped to 12.3% (from 13.2%) and Walgreens to 7.7% (from 8.5%). Lease maturities are very manageable at only 0.9% 2018.”

According to TipRanks.com, Corak is ranked 0 out of 5 stars with an average return of -3.8% and a 34.6% success rate. Corak covers the Financial sector, focusing on stocks such as National Storage Affiliates Trust, Preferred Apartment Communities, and NorthStar Realty Europe Corp.

Agree Realty Corp has an analyst consensus of Strong Buy, with a price target consensus of $54.86.

Agree Realty Corp’s market cap is currently $1.34B and has a P/E ratio of 22.51. The company has a book value ratio of 1.6355.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ADC in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Agree Realty Corp. is a real estate investment trust, which focuses on the ownership, development, acquisition and management of retail properties net leased to national tenants. It specializes in acquiring and developing net leased retail properties for industry leading retail tenants.