JPM starts coverage on Postal Realty Trust with 'buy'

Postal Realty Trust

13/10/2022 13:06

** JPMorgan initiates coverage of real estate investment
trust Postal Realty Trust Inc  PSTL.N  with "neutral" rating; PT
$17
    ** Stock looks appealing to small-cap investors looking for
high dividend yields - JPM
    ** Brokerage notes that the co's stable cash flow in current
uncertain macro environment is valuable 
    ** Co's owns ~6% of area leased to United States Postal
Services (USPS), greater potential for further ownership
expansion - JPM
    ** Says USPS has been a stable rent payer and the de facto
government credit gives co defensive properties during an
economic downturn
    ** But PSTL has lower opportunity for internal growth due to
lower near-term lease expirations - brokerage
    ** Five of seven brokerages rate the stock "buy" or higher,
three "hold"; their median PT is $18 - Refinitiv data
    ** Up to Wednesday's close, stock had fallen ~25% vs a ~21%
decline in the NYSE Composite index  .NYA 
 (Reporting by Johann M Cherian in Bengaluru)
 ((johann.mcherian@thomsonreuters.com;))