Mark Rothschild, an analyst from Canaccord Genuity, maintained the Buy rating on Automotive Properties (APR.UN – Research Report). The associated price target remains the same with C$13.00.
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Mark Rothschild’s rating is based on a combination of factors that highlight Automotive Properties’ strategic growth and financial stability. The REIT’s recent acquisitions, including a Rivian dealership in Tampa and a Tesla collision center in Ohio, are expected to enhance cash flow and expand its presence in the US market, positioning it for significant growth. These acquisitions also help to diversify its revenue base, reducing its reliance on its largest tenant, the Dilawri Group, which remains financially robust.
Furthermore, Automotive Properties has demonstrated consistent financial performance, with a 4.1% year-over-year increase in funds from operations per diluted unit, aligning with expectations. The REIT’s limited near-term debt maturities and fully occupied portfolio suggest stable cash flow prospects, supported by contractual rent increases. The valuation metrics, including a cap rate of 7.3% and a target price of $13.00, reflect a favorable comparison to other REITs, justifying the Buy rating.
Rothschild covers the Real Estate sector, focusing on stocks such as RioCan Real Estate Investment, Parkit Enterprise, and Dream Office Real Estate Investment. According to TipRanks, Rothschild has an average return of 7.3% and a 62.92% success rate on recommended stocks.