-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We leave our 12-month target price unchanged at $47, 13.1x our 2026 FFO estimate, a premium to the three-year average (12.7x) with NNN's recently acquired property performing well. We leave both our 2026 and 2027 FFO estimates unchanged at $3.58 and $3.77, respectively. We continue to hear comments from management that state increasing competition is causing 15-25 bps in cap rate compression, which is a long-term headwind, in our view. NNN's acquisition pipeline is still strong, but we are unsure if Q1's $145 million at 7.5% is sustainable and believe going-in cap rates are likely to decline this year. Management noted that sale-leaseback transactions are growing as businesses seek alternative financing and balance sheet management, which provide a strong pipeline of NNN's relationship-based deals to execute. We believe tenant credit risks are shrinking vs. 2024 and 2025 as management has worked to actively target more resilient tenants less likely to be displaced by e-commerce growth in recent years.