UPDATE: Wunderlich Securities Upgrades Agree Realty On Valuation


In a report published Wednesday, Wunderlich Securities analyst Craig Kucera upgraded the rating on Agree Realty (NYSE: ADC) from Hold to Buy, and reiterated the $34.00 price target.

In the report, Wunderlich Securities noted, “We are raising our rating on Agree Realty Corporation (ADC) from Hold to Buy as shares are now trading below peers on a relative basis as well as our NAV and DCF valuation for the company. ADC continues to maintain considerable balance sheet potential while acquiring single tenant retail assets occupied by investment grade tenants. Since our last note, ADC's peer group multiple has expanded nearly 1x to 14.1x 2014 FFO, while ADC has dropped from trading in line to a 1.1x discount.

"Our $34 price target values ADC at an in-line (13.5x vs 13.3x) 2015 AFFO multiple and a discount to our NAV and DCF valuations in the ~$34.40 range. The market is not differentiating for ADC's quality tenant base or underlevered balance sheet; as such, we are raising our rating from Hold to Buy.”

Agree Realty closed on Tuesday at $29.39.

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