Michael Markidis, an analyst from BMO Capital, maintained the Hold rating on Boardwalk REIT. The associated price target was raised to C$77.00.
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Michael Markidis has given his Hold rating due to a combination of factors affecting Boardwalk REIT’s current and future performance. While the company delivered strong Q2 results with notable growth in SP-NOI and FFOPU, the narrowing embedded MTM in non-regulated markets suggests a moderation in revenue growth in the upcoming quarters. This moderation is a key concern as it indicates that the robust growth seen may not be sustainable in the long term.
Additionally, although there is ample capacity to fund net growth with a stable net debt and improved TTM D/EBITDA, the slowing demand amidst elevated supply levels poses a risk. The sequential revenue growth might decelerate faster than the market expects, adding uncertainty to future performance. These factors combined lead to a cautious outlook, justifying the Hold rating despite the positive financial adjustments and acquisitions planned for the near future.
Markidis covers the Real Estate sector, focusing on stocks such as Boardwalk REIT, First Capital Realty, and Dream Industrl REIT. According to TipRanks, Markidis has an average return of 11.0% and a 72.17% success rate on recommended stocks.