KeyBanc downgrades Netstreit to Underweight on estimate risk

KeyBanc analyst Todd Thomas last night downgraded Netstreit to Underweight from Sector Weight with a $13 price target. The analyst sees risk to fiscal 2024 funds from operations estimates given lower levels of expected accretion from the company’s investments. The spread between Netstreit’s current cost of capital and investment yields has narrowed, which will have a disproportionate impact on its growth outlook versus peers, the analyst tells investors in a research note.