On Thursday, Stifel analysts adjusted their outlook on VICI Properties Inc. (NYSE: NYSE:VICI), a prominent specialized REIT with a market capitalization of $32.39 billion, increasing the stock’s price target to $34.00, up from the previous target of $33.75. The firm reaffirmed its Buy rating on the company’s shares, noting its strong financial health score of "GREAT" according to InvestingPro metrics. The revision followed the release of VICI Properties’ initial 2025 Adjusted Funds From Operations (AFFO) guidance, which forecasts an AFFO per share in the range of $2.32 to $2.35. This projection aligns closely with the consensus estimate of $2.32 among market analysts. The company currently trades at an attractive P/E ratio of 11.38x and offers a substantial dividend yield of 5.68%, having raised its dividend for seven consecutive years.
Stifel’s commentary on the updated price target highlighted that the company’s guidance is based on current operations and does not factor in any pending transactions, activities in the capital markets, or other non-recurring events. Additionally, the guidance is set without the assumption of any forward equity being settled.
VICI Properties’ guidance provides investors with a glimpse into the company’s financial expectations for the year 2025. It is significant to note that the guidance is conservative, as it excludes potential impacts from future financial activities and one-time transactions that could influence the company’s performance.
The company’s focus on presenting a guidance range that only considers ongoing operations suggests a transparent and cautious approach to financial forecasting. By excluding uncertain factors, VICI Properties aims to offer a clear picture of its anticipated operational performance over the next few years.
The increase in VICI Properties’ price target by Stifel reflects a positive sentiment from the firm based on the company’s current operational stance and financial outlook. With analyst price targets ranging from $32 to $43, and a strong consensus recommendation of 1.54 (Buy), investors holding VICI shares or those considering adding the stock to their portfolios now have updated information to consider. For deeper insights, InvestingPro offers additional exclusive ProTips and a comprehensive research report, part of its coverage of over 1,400 US stocks.
In other recent news, VICI Properties Inc. has secured a $2.5 billion multicurrency unsecured revolving credit facility, which replaces its previous facility of the same size and matures in 2029. This facility, oversubscribed and supported by 15 financial institutions, enhances VICI’s liquidity and financing flexibility, according to Executive Vice President and CFO David Kieske. Additionally, VICI Properties L.P., a subsidiary of the company, has issued $750 million in senior unsecured notes with a 5.125% interest rate, maturing in 2031, to redeem existing notes due in 2025. Barclays (LON:BARC) has initiated coverage on VICI with an Overweight rating and a $36.00 price target, citing the company’s asset quality and economic productivity as reasons for a higher valuation. JMP Securities has maintained a Market Outperform rating with a $35.00 price target, highlighting VICI’s strategic shift towards financing transactions amid volatile interest rates. The firm’s analysts also noted VICI’s involvement in a mixed-use development in Beverly Hills, which aligns with its strategy of selective investments. These developments reflect VICI’s ongoing efforts to strengthen its financial position and expand its portfolio strategically.
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