On Friday, Wolfe Analysis introduced an improve of Gaming and Leisure Properties (NASDAQ:) inventory from Peer Carry out to Outperform, setting a year-end 2025 worth goal of $57.00. This goal suggests a possible complete return of 23%, together with dividends. The agency highlighted that the extension of the corporate’s earnings profile into 2026 ought to seize key development alternatives.
The analysis agency anticipates that Gaming and Leisure Properties’ earnings development will greater than double to between 4% and 5% in 2025 and 2026, up from 1.5% in 2024. This development is anticipated to be pushed by long-dated tasks that may have an annualized affect extending into 2027.
The valuation multiples relative to the expansion prospects had been additionally thought-about engaging, with the corporate buying and selling at an estimated 12.8 instances its anticipated 2025 Adjusted Funds From Operations (AFFO) and a Worth/Earnings to Development (PEG) ratio of three.1 instances for the years 2025 to 2026.
Wolfe Analysis identified that Gaming and Leisure Properties turns into significantly interesting on a yield plus development foundation, given its present dividend yield of 6.1%. The agency additionally famous the excessive and well-covered dividend, with an roughly 81% payout ratio, which they consider mitigates draw back threat if development alternatives don’t materialize.
Nonetheless, the agency acknowledged dangers related to the corporate’s concentrated tenant base, with 73% of revenue from actual property coming from the highest two tenants. A credit score occasion affecting a serious tenant may have a big affect. Moreover, the timeline for potential transactions will not be mounted and will face delays. It was additionally talked about that many potential transactions are with Bally’s, an organization that has just lately been bought, which may have an effect on the amount and timing of transactions.
The report concluded by stating that if capitalization charges start to say no—a state of affairs thought-about logical if rates of interest lower—Gaming and Leisure Properties could be an advantageous relative funding because of its substantial capital deployment at preset yields.
In different current information, Gaming and Leisure Properties, Inc. has introduced a considerable public providing of notes valued at $1.2 billion. The corporate plans to make use of the online proceeds for numerous company actions, together with working capital, property growth, and debt compensation. The providing is about to shut contingent on sure situations being met.
Along with this, the corporate reported a $24 million year-over-year improve in complete revenue from actual property. Additionally they detailed a $1.6 billion transaction with Bally’s, to be funded by way of a mixture of debt and fairness. The complete-year 2024 Adjusted Funds From Operations (AFFO) steering is projected to be between $3.74 and $3.76 per diluted share and OP items.
RBC Capital Markets revised its worth goal for Gaming and Leisure Properties, elevating it from $52.00 to $53.00, whereas sustaining an Outperform score. This adjustment adopted the corporate’s current monetary report, which RBC Capital discovered to align with their projections.
Gaming and Leisure Properties can also be actively concerned in a undertaking in Chicago and regardless of slight declines in lease protection ratios, the corporate expressed confidence within the profitability and reliability of its tenants and their leases.
InvestingPro Insights
Latest evaluation from InvestingPro aligns with Wolfe Analysis’s optimistic outlook on Gaming and Leisure Properties (NASDAQ:GLPI). InvestingPro Suggestions point out that analysts have just lately revised their earnings upwards for the upcoming interval, suggesting confidence within the firm’s monetary trajectory. Moreover, GLPI’s liquid property surpass its short-term obligations, offering a stable monetary basis and probably mitigating the draw back threat related to its concentrated tenant base.
From a valuation perspective, GLPI’s market capitalization stands at roughly $14.05 billion, with a P/E ratio of 17.2, reflecting a steady funding profile. The corporate has additionally been buying and selling close to its 52-week excessive, which could possibly be a testomony to investor confidence and the inventory’s potential for development. Moreover, the corporate’s income has seen a development of seven.47% over the past twelve months as of Q2 2024, indicating a wholesome monetary efficiency.
For these excited about dividend returns, GLPI presently provides a compelling dividend yield of 6.11%, complementing the capital development potential highlighted by Wolfe Analysis. With a complete of 4 further InvestingPro Suggestions out there, traders can delve deeper into the corporate’s monetary well being and development prospects by visiting https://www.investing.com/professional/GLPI.
This text was generated with the assist of AI and reviewed by an editor. For extra data see our T&C.