Friday, Credit Suisse upgraded Realty Income Corp. (O) shares to Outperform from Neutral and increased its pr ice target to $27 from $23.
Analyst Rosivach upgraded the stock and increased price target based on relative valuation and acquisitions as an upside catalyst. The analyst believes a key bear case is that defaults of poor credit tenants will lead to higher vacancy and a distribution cut.
The analyst thinks this view must be tempered by Realty Income credit underwriting that has led to strong performance in Chapter 11 bankruptcies, Realty Income financial strength, which both reduces topline sensitivity to earnings and provides sources for short term distribution shortfalls.
The analyst's 2010 FFO estimate of $1.85 is based on $250 million of acquisitions over the course of 2010. Larger or faster acquisitions would lead to potential upside to the analyst's estimates-and greater distribution coverage.
Currently, O is up $0.45 or 1.93% and trading at $23.81.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.