Updated Aug 13 at 4:28pm ET.
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July's inflation data showed prices rising exactly as much as analysts expected. Core inflation, which strips out volatile food and energy costs, rose 0.2 percent for the month.
This stability is important for real estate companies like this one because they often carry significant debt to fund property purchases. When inflation stays predictable, it reduces the chance that the Federal Reserve will raise interest rates, which helps keep borrowing costs from climbing.
Raymond James reduced its price target to $47. While this is a lower target, it still sits above the current stock price of about $44. Analysts often adjust these targets to match recent market movements or slight changes in growth expectations. Since the rating itself did not change, this looks like a technical update rather than a warning about the company's health.
Source: Raymond James
Scotiabank nudged its price target up from $49 to $50. This is a routine adjustment that suggests the firm sees the stock as fairly valued near its current levels. For a real estate company focused on gaming, these small target changes often reflect minor updates to cash flow models after a quarterly report rather than a shift in how the analyst views the business.
Source: Scotiabank
The company brought in $430 million in revenue last quarter, up from about $395 million a year ago. It earned $0.80 per share, which was slightly ahead of what analysts expected. This growth was driven by steady rent from its casino properties and new investments in its portfolio.
Management also raised its full-year guidance, signaling they expect this momentum to continue. For a real estate owner, the most important number is often Adjusted Funds From Operations, a measure of the cash available to pay dividends. That figure rose to $1.03 per share, supporting the current 7.4 percent dividend yield.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Analysts recently adjusted their price targets following the company's strong second-quarter earnings report. Most analysts, 18 of 27, rate the stock a buy, and the average target of $50 suggests a 15% gain from today's price.
Management has a very consistent track record of clearing the bars they set for themselves. They have beaten profit expectations in seven of the last eight quarters.
| Expectation | |
|---|---|
| EPS | $0.80 |
| Revenue | $435M |
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