Update shared on27 Aug 2025
Fair value Increased 3.70%Broadstone Net Lease’s fair value has been revised upward to $19.60 as analysts gain confidence in management’s strategic execution, earnings visibility from a growing development pipeline, and enhanced growth prospects following accretive transactions and strong Q2 results.
Analyst Commentary
- Disposal of the healthcare portfolio increased confidence in management's strategic execution.
- Expansion of the build-to-suit development pipeline provides visibility into future earnings growth.
- Improved cost of equity expectations due to enhanced growth profile and accretive transactions.
- Better-than-expected execution on accretive acquisition and development activity.
- Overall positive repositioning within the net-lease peer group following strong Q2 results.
What's in the News
- Goldman Sachs double upgraded Broadstone Net Lease to Buy from Sell with a raised price target of $21 (from $14), citing successful healthcare portfolio disposal and confidence in management, as well as promising earnings growth from its build-to-suit pipeline (Periodicals).
- Broadstone Net Lease added three new build-to-suit development projects, including industrial warehouses in Dallas (for Palmer Distribution) and California's Central Valley (for AGCO Corporation), plus a grocery store for Sprouts Farmers Market in Dallas, totaling approximately $61.4 million in investments and expected to deliver in Q3 2026 (Key Developments).
- The company is expanding its relationships by engaging two new development partners for its latest projects in California and Texas (Key Developments).
- Broadstone Net Lease was added to the Russell 2000 Dynamic Index, increasing its visibility and potential investor base (Key Developments).
- The company executed no share buybacks between April 1, 2025, and June 30, 2025, under the current repurchase program (Key Developments).
Valuation Changes
Summary of Valuation Changes for Broadstone Net Lease
- The Consensus Analyst Price Target has risen slightly from $18.90 to $19.60.
- The Consensus Revenue Growth forecasts for Broadstone Net Lease remained effectively unchanged, moving only marginally from 5.3% per annum to 5.4% per annum.
- The Future P/E for Broadstone Net Lease remained effectively unchanged, moving only marginally from 31.46x to 31.10x.
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