Realty Income reinstated with a Neutral at JPMorgan

JPMorgan analyst Anthony Paolone reinstated coverage of Realty Income with a Neutral rating and price target of $64, down from $69, following a period of restriction. The analyst updated the company’s model to include the acquisition of Spirit Realty. The firm assumes a blended cap rate of 6.5% and arrives at a net asset value per share estimate of $56. At its current stock price, Realty Income trades at an implied cap rate of 6.6%, the analyst tells investors in a research note.