BNL Stock Forecast & Price Target

Broadstone Net Lease Inc has demonstrated a robust performance with shares increasing by 11% recently, significantly outperforming both the S&P and the broader REIT index by approximately 300 basis points and 900 basis points, respectively. The company has also revised its estimates for Adjusted Funds from Operations per share, projecting an increase to $1.48 for 2025 and $1.53 for 2026, indicating positive financial expectations. Additionally, Broadstone Net Lease has ramped up its investment guidance to a range of $500 million to $700 million, reflecting a proactive approach to capitalizing on growth opportunities.

Broadstone Net Lease faces significant challenges, as rising costs for mission-critical free-standing properties hinder the company's ability to secure attractive cap rates relative to its cost of capital. Additionally, there are concerns regarding increasing uncollectible rents from tenants due to the impact of rising interest rates and capital constraints, which may adversely affect future funds from operations (FFO) per share growth. Lastly, the high equity cost of capital poses a challenge for the company in financing new investment opportunities, further exacerbated by the potential for increasing interest rates, which could negatively affect the company's share price.