Potential Earnings Dilution In Peakstone Realty's Long-Term Transition, Analyst Forecasts
Portfolio Pulse from Lekha Gupta
Truist Securities analyst Anthony Hau initiated coverage on Peakstone Realty Trust (NYSE:PKST) with a Hold rating and a price target of $24. Hau is bullish on PKST's valuation but believes the company's transition into an industrial REIT may take years and lead to earnings dilution. He also expects near-term cash flow growth to be challenging due to lower leverage and high general & administrative expenses.

June 02, 2023 | 6:22 pm
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Truist Securities analyst Anthony Hau initiated coverage on Peakstone Realty Trust with a Hold rating and a price target of $24. The company's transition into an industrial REIT may take years and lead to earnings dilution, with near-term cash flow growth expected to be challenging.
The analyst is bullish on PKST's valuation but believes the company's transition into an industrial REIT may take years and lead to earnings dilution. This could impact the stock price in the short term. Additionally, near-term cash flow growth is expected to be challenging due to lower leverage and high general & administrative expenses, which may also affect the stock price. However, the Hold rating suggests a neutral stance on the stock, so the overall impact is scored as 0.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100