Baird analyst Wesley Golladay has updated his outlook for Getty Realty (GTY, Financial), reducing the price target from $33 to $32. Despite the adjustment, the Neutral rating on the stock remains unchanged. This revision follows the company's first-quarter results, during which it met expectations and indicated a refreshed project pipeline.
The decision to adjust the price target comes as Golladay incorporates new data from Getty Realty's Q1 performance into the firm's financial model. While the company's earnings aligned with predictions, the strategic move to enhance its project pipeline was noted as a positive development going forward.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Getty Realty Corp (GTY, Financial) is $33.17 with a high estimate of $35.00 and a low estimate of $32.00. The average target implies an upside of 16.33% from the current price of $28.51. More detailed estimate data can be found on the Getty Realty Corp (GTY) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Getty Realty Corp's (GTY, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Getty Realty Corp (GTY, Financial) in one year is $33.09, suggesting a upside of 16.06% from the current price of $28.51. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Getty Realty Corp (GTY) Summary page.
GTY Key Business Developments
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Getty Realty Corp (GTY, Financial) reported a 14.5% increase in annualized base rent, reaching approximately $198 million.
- The company exceeded its AFFO per share guidance, reporting $2.34, a 4% increase over the previous year.
- Getty Realty Corp (GTY) successfully invested $209 million in high-quality convenience and automotive retail assets.
- The company expanded its presence in top metropolitan statistical areas (MSAs) across the U.S.
- Getty Realty Corp (GTY) maintained a strong occupancy rate of 99.7% with a weighted average lease term of 10.2 years.
Negative Points
- The bankruptcy of Zips Car Wash, a tenant representing 1.8% of total ABR, poses a risk to rental income.
- Getty Realty Corp (GTY) revised its AFFO guidance downward due to potential rent adjustments and downtime from the Zips situation.
- The company faces challenges in the net lease transaction market due to broader economic concerns and a slowdown in financing opportunities.
- There is a persistent gap in pricing expectations between buyers and sellers, impacting sale leaseback transactions.
- Interest rates are expected to remain high, which could affect future investment opportunities and cap rate compression.
