BNL Stock Forecast & Price Target

Broadstone Net Lease Inc has demonstrated strong stock performance, with shares rising 11% for the quarter and outperforming the S&P 500 and broader REIT index by approximately 300 basis points and 900 basis points, respectively. The company is actively enhancing its growth prospects, as evidenced by an increase in its annualized funds from operations (AFFO) per share estimates for 2025 and 2026, now projected at $1.48 and $1.53, respectively. Additionally, Broadstone has ramped up its investment guidance for the year to between $500 million and $700 million, indicating a robust commitment to expanding its portfolio strategically.

Broadstone Net Lease faces significant challenges due to rising costs for mission-critical freestanding properties, which hinder its ability to source attractive cap rates in relation to its cost of capital. Additionally, the company is at risk of increased uncollectible rents stemming from tenants grappling with the effects of rising interest rates and capital constraints, which could negatively impact future funds from operations per share growth. Furthermore, high equity costs present obstacles for the company in issuing new equity to finance investments, thereby exacerbating its financial outlook.