RBC starts coverage on Gaming and Leisure Properties on durable cash flows

Gaming and Leisure Properties

19/09/2022 12:54

** RBC initiates coverage on Gaming and Leisure Properties
Inc  GLPI.O  with "outperform" rating and price target $54/share
    ** Brokerage sees "highly durable" regional gaming cash
flows for the casino REIT owing to focus on local gamblers
compared to vacation casino destinations
    ** Co has highest concentration risk in the net lease
universe which is more than offset by extremely robust lease
protections - RBC
    **  Broker sees "plenty of runway for new accretive
acquisitions" with 50 gaming assets available just among
existing tenants
    ** Says "GLPI should trade more off DCF (discounted cash
flow) and cash flow quality, and see upside to the current
valuation when taking that view into account" 
    ** Fifteen of 19 analysts rate the stock "buy" or higher,
three "hold" and one "sell"; their median PT is $55.50 –
Refinitiv data
    ** Stock broadly flat so far this year, as of last close
    

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.mishra@thomsonreuters.com))