John Kim, an analyst from BMO Capital, maintained the Hold rating on Postal Realty. The associated price target is $16.00.
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John Kim’s rating is based on a combination of factors that highlight both strengths and challenges for Postal Realty. The company demonstrated robust performance in the third quarter of 2025, with a notable 10% year-over-year growth in AFFOps and an 18% increase in acquisitions. This strong performance led to an upward revision of the full-year 2025 AFFOps guidance by 4.8%, positioning Postal Realty as a leader in the net lease sector with a projected 12.9% growth year-over-year.
Despite these positive developments, Kim’s Hold rating suggests a cautious stance, likely due to the inherent risks and uncertainties in the market. While the U.S. Postal Service operations remain stable and unaffected by government shutdowns, the sequential decline in cap rates and the challenges of maintaining growth momentum may have influenced the decision to maintain a Hold rating. These factors, combined with the company’s current valuation and market conditions, contribute to the balanced outlook reflected in the Hold recommendation.
Kim covers the Real Estate sector, focusing on stocks such as Plymouth Industrial Reit, Alexandria Equities, and BXP. According to TipRanks, Kim has an average return of -1.5% and a 42.83% success rate on recommended stocks.