Canaccord Genuity analyst Mark Rothschild maintained a Buy rating on PRO Real Estate Investment (PRV.UN – Research Report) today and set a price target of C$6.50.
Mark Rothschild has given his Buy rating due to a combination of factors that highlight the potential for growth and value in PRO Real Estate Investment Trust. The company has shown resilience in its financial performance, with a notable increase in funds from operations (FFO) per unit for the full year 2024, despite a temporary decline in the fourth quarter due to asset sales and associated costs. The strong leasing spreads from its industrial portfolio and the completion of the asset sale program are expected to drive a recovery in FFO per unit.
Additionally, the valuation metrics are compelling, with PRO trading at a significant discount to its net asset value (NAV) and at a lower cash flow multiple compared to its peers. This discount presents an attractive investment opportunity, as the company is poised for mid to high single-digit growth in same-property net operating income (NOI) over the next couple of years. These factors, combined with a healthy distribution yield, underpin Rothschild’s confidence in the stock’s potential, justifying the Buy rating.
According to TipRanks, Rothschild is a 5-star analyst with an average return of 7.4% and a 62.12% success rate. Rothschild covers the Real Estate sector, focusing on stocks such as RioCan Real Estate Investment, Parkit Enterprise, and Dream Office Real Estate Investment.