BTIG analyst Michael Gorman lowered the firm’s price target on Postal Realty Trust to $17 from $22 but keeps a Buy rating on the shares. The analyst is adjusting his model to assume reduced deal volume this year with approximately $80M of acquisitions at 7.2% cap rates versus the estimated $118M of volume in 2022 at approximately 6.9% cap rates. While there is capital available for deal execution in the net lease space, pricing continues to be an issue for acquirers at the current financing spreads, and his model assumes that Postal Realty will tap the equity markets for about 50% of its acquisition volumes this year in addition to tapping the revolving credit facility, Gorman tells investors in a research note.
Published first on TheFly
