Canaccord Genuity analyst Mark Rothschild maintained a Buy rating on Minto Apartment Real Estate Investment Trust yesterday and set a price target of C$16.50.
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Mark Rothschild has given his Buy rating due to a combination of factors that highlight the potential for Minto Apartment Real Estate Investment Trust’s stock to appreciate. Despite a slight decline in funds from operations (FFO) per unit, the REIT’s ability to increase same-property net operating income (NOI) by 1.6% year-over-year, driven by a 5.2% rise in rental rates, demonstrates resilience in its core operations. The REIT’s strategic signing of new commercial leases, expected to significantly boost annual rent, further supports its growth prospects.
Additionally, Minto’s current trading price reflects a substantial discount to its net asset value (NAV) estimate, suggesting undervaluation in the market. The implied cap rate of 6.0% and a trading discount of 25.8% to the NAV estimate indicate potential upside for investors. These factors, combined with a target price set at a 10% discount to the NAV estimate, underpin Rothschild’s Buy recommendation, as the stock presents an attractive opportunity for capital appreciation.
Rothschild covers the Real Estate sector, focusing on stocks such as InterRent REIT Un, Canadian Apartment, and Killam Apartment REIT Un. According to TipRanks, Rothschild has an average return of 9.1% and a 67.29% success rate on recommended stocks.