NETSTREIT (NTST): Evaluating Valuation After $450 Million Loan Bolsters Growth and Liquidity

NETSTREIT has just wrapped up $450 million in new term loan commitments and amended its credit agreements with key banking partners. This move immediately boosts liquidity and supports its acquisition-driven growth strategy.

See our latest analysis for NETSTREIT.

Building on the momentum from its sizable debt financing and public equity raise this year, NETSTREIT’s latest moves appear to have strengthened investor confidence. The stock’s share price has held up well, with a year-to-date gain and a steady 1-year total shareholder return. This suggests the market sees continued growth potential as the company expands its portfolio and shores up liquidity.

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With shares trading nearly 8 percent below the average analyst price target and solid growth in both annual revenue and net income, the question is whether NETSTREIT is undervalued or if optimism about its future is already reflected in the stock price.

Most Popular Narrative: 6.7% Undervalued

Compared to NETSTREIT’s last close at $18.39, the most widely followed narrative estimates a fair value of $19.72, suggesting a modest, yet meaningful, margin to the upside. This framework balances recent share performance with longer-term growth projections and evolving sector dynamics.

“Population and household growth in key U.S. Sun Belt and suburban regions continues to fuel strong demand for necessity-based retail locations. This allows NETSTREIT to maintain low vacancy rates, attract high-quality tenants, and drive stable rental revenue growth over the long term. Demand from institutional and 1031 buyers for essential retail and net-leased properties remains robust, supporting strong asset valuations and enabling NETSTREIT to recycle capital efficiently through accretive dispositions and reinvestment, which should bolster earnings growth.”

Read the complete narrative.

Curious what underpins this value gap? The secret sauce is baked into ambitious projections for profit growth, higher margins, and a future multiple that breaks the norm for this sector. Want a glimpse into the bold assumptions backing this fair value? Dive into the full narrative and see what’s shaping these expectations.

Result: Fair Value of $19.72 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing growth in e-commerce or shifts within key tenant categories could limit NETSTREIT’s future rent growth and challenge its current momentum.

Find out about the key risks to this NETSTREIT narrative.

Another View: SWS DCF Model Shows Deeper Value

While analyst targets suggest only modest upside, our DCF model puts NETSTREIT’s fair value much higher, estimating shares are trading at over a 56% discount. The DCF approach weighs long-term cash flows more heavily, raising the question: are analysts being too careful, or is the market missing a bigger opportunity?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own NETSTREIT Narrative

If you’d rather challenge these assumptions or piece together your own outlook, it’s never been easier to start your own analysis and narrative in minutes: Do it your way

A great starting point for your NETSTREIT research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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