Realty Income falls after brokerage Mizuho downgrades rating, cuts PT

Realty Income

14/11/2024 17:04

** Shares of real estate investment trust Realty Income
 O.N  fall 1% to $56.31
    ** Mizuho downgrades rating to "neutral" from "outperform" 
    ** Cuts PT to $60 from $64, still representing a 5.5% upside
to stock's last close
    ** Expectations of higher inflation and "higher-for-longer"
rate environment should weigh on REITs investment spreads and
growth potential, says brokerage
    ** Expects company's growth to decelerate in 2025 vs 2024,
but inflecting towards the end of 2025 and into 2026 on
accretion from data-center building joint venture with Digital
Realty  DLR.N  
    ** Six brokerages rate the stock "buy" or higher and 15
"hold"; their median PT is $63.50 - LSEG data
    ** As of last close, stock down ~2% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))