Postal Realty Trust down as BMO downgrades to 'market perform'

Postal Realty Trust

25/03/2022 11:57

** Shares of real estate investment trust  PSTL.N  down
1.26% at $17.19 after BMO downgrades stock
    ** BMO cuts rating to "market perform" from "outperform",
following Q4 results and adjusting for current market interest
rates
    ** The company announced the acquisition of Real Estate
Asset Counseling, commonly known as REAC, on its Q4 earnings
call, which BMO says will drag on co's outlook for FY22
    ** Co in Q4 call noted on a 100bps expected decrease for
going-in cap rates on assets, a scenario which will negatively
impact growth in the near-term, brokerage says
    ** Cuts PT by $3 to $19, implying an upside of ~9% from last
close
    ** Avg. rating of 8 analysts covering PSTL is "BUY"; median
PT is $21 - Refinitiv data
    ** Up to Thursday's close, stock had fallen 12% YTD
    

 (Reporting by Amal S in Bengaluru)
 ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780;
outside U.S. +91 80 6749 3677;))