JMP maintains $21 target on Broadstone Net Lease stock

Monday, JMP analysts maintained a Market Outperform rating and a $21.00 price target for Broadstone Net Lease (NYSE:BNL) stock, representing a potential 32% upside from the current price of $15.91. The analysts highlighted the company's adept handling of tenant credit issues, which have had limited impact on the bottom line, reflected in the company's impressive 94.35% gross profit margin. Broadstone Net Lease's management has been notably transparent about its dealings with the home-decor retailer At Home, which has been placed on a watchlist due to financial challenges. Despite the potential for a bankruptcy filing by At Home, BNL's management is confident in the quality and locations of its properties associated with this tenant and anticipates minimal bottom-line dilution.

Over the past year, Broadstone Net Lease has executed a portfolio rationalization strategy that has enhanced the weighted average lease term and the rent durability of its properties. This strategy has also diversified its investment approach to include development projects, setting it apart from its peers and positively affecting the company's financial outcomes. According to InvestingPro data, the company maintains a healthy current ratio of 1.93, indicating strong liquidity to meet its short-term obligations.

The analysts underscored the attractive valuation of Broadstone Net Lease shares, which are currently trading at approximately 11 times the estimated 2025 Adjusted Funds From Operations (AFFO) per share. This valuation represents a 2.5-turn discount compared to the average of its net-lease peers. The company also offers a significant 7.29% dividend yield and has maintained dividend growth for five consecutive years. Based on these considerations, JMP analysts reaffirmed their positive stance on the investment opportunity presented by Broadstone Net Lease. For deeper insights into BNL's valuation and financial health metrics, explore the comprehensive research available on InvestingPro , which features detailed analysis of over 1,400 US stocks.

In other recent news, Broadstone Net Lease reported its first-quarter 2025 earnings, which fell short of analyst expectations. The company reported an earnings per share (EPS) of $0.09, missing the forecast of $0.18, and recorded revenue of $108.69 million, slightly below the anticipated $108.93 million. Despite this shortfall, Broadstone maintained its 2025 AFFO guidance range of $1.45 to $1.49 per share. In addition, Broadstone Net Lease's first-quarter performance aligned with projected earnings, and the company expanded its development pipeline, aiming to add $500 million in build-to-suit projects this year.

BMO Capital Markets reaffirmed its Outperform rating on Broadstone, citing the company's commitment to expanding its project pipeline to over $800 million. Similarly, Citizens JMP maintained its Market Outperform rating, with a $21.00 price target, emphasizing Broadstone's strategic investments and financial health. The firm's liquidity is expected to support a forecasted 25% year-over-year increase in deployment volumes.

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Furthermore, Broadstone announced the election of nine directors during its 2025 Annual Meeting of Stockholders. The compensation for executive officers was approved, and Deloitte & Touche LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025. These developments reflect Broadstone's ongoing strategic initiatives and financial stability.

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