A Slew Of REIT Downgrades Start The Week On A Sour Note
Portfolio Pulse from Ethan Roberts
Analysts have downgraded several REITs, potentially signaling a shift in momentum after a strong five-week run. Vornado Realty Trust (VNO) was downgraded by Evercore ISI Group from In-Line to Underperform with a raised price target. National Storage Affiliates Trust (NSA), CubeSmart (CUBE), Equity Residential (EQR), Gaming and Leisure Properties Inc. (GLPI), and Agree Realty Corp. (ADC) also saw downgrades from analysts with various adjustments to their price targets. Additionally, Wells Fargo downgraded three hotel REITs: Apple Hospitality REIT Inc. (APLE), Diamondrock Hospitality Co. (DRH), and Sunstone Hotel Investors Inc. (SHO).
December 11, 2023 | 8:12 pm
News sentiment analysis
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NEGATIVE IMPACT
Agree Realty Corp. was downgraded from Buy to Neutral with a price target decrease from $67 to $61 by Mizuho analyst Haendel St. Juste.
The downgrade and reduced price target could signal a lack of confidence in ADC's near-term growth, possibly affecting its stock price negatively.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Apple Hospitality REIT Inc. was downgraded from Overweight to Equal-Weight with a $17 price target by Wells Fargo analyst Dori Kesten.
The downgrade to Equal-Weight suggests a neutral view on the stock, which could lead to a stabilization or slight decrease in APLE's stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
CubeSmart was downgraded from Outperform to In-Line with a price target increase from $42 to $43 by Evercore ISI Group.
The downgrade could reflect a belief that CubeSmart's stock has reached its near-term potential, potentially leading to a short-term price decline.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Diamondrock Hospitality Co. was downgraded from Overweight to Equal-Weight with a $9 price target by Wells Fargo analyst Dori Kesten.
The downgrade to Equal-Weight could indicate that the stock's upside potential is limited, potentially leading to a short-term pause or decline in DRH's stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Equity Residential was downgraded from Buy to Neutral with a price target decrease from $62 to $58 by Mizuho analyst Haendel St. Juste.
The downgrade and lower price target suggest a bearish outlook, which could lead to a negative short-term impact on EQR's stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
Gaming and Leisure Properties Inc. was downgraded from Buy to Neutral with a price target decrease from $50 to $47 by Mizuho analyst Haendel St. Juste.
The downgrade and price target reduction indicate a cautious stance from the analyst, potentially leading to a short-term drop in GLPI's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
National Storage Affiliates Trust was downgraded from In-Line to Underperform with a price target increase from $32 to $35 by Evercore ISI Group.
The downgrade, despite the price target hike, could dampen investor sentiment and negatively affect NSA's stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Sunstone Hotel Investors Inc. was downgraded from Equal-Weight to Underweight with a $9.50 price target by Wells Fargo analyst Dori Kesten.
The downgrade to Underweight suggests a bearish perspective, which could negatively impact SHO's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
Vornado Realty Trust was downgraded from In-Line to Underperform with a price target increase from $23 to $28 by Evercore ISI Group.
The downgrade suggests that the analyst believes VNO's recent gains are unsustainable, which could lead to a negative short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90