EPR Properties (EPR) Stock Forecast & Price Target

EPR Properties is positioned for growth due to the anticipated rebound of the North American box office, with projections estimating a rise to $9.3-9.7 billion by 2025, supported by an increase in film releases from major studios. The company's strong focus on the Experiential sector aligns well with consumer trends favoring experiential spending over material goods, indicating favorable long-term cash flow prospects. Furthermore, ongoing improvements in tenant liquidity, particularly with AMC Theatres, alongside potential capital recycling initiatives, are expected to further enhance earnings, which are projected to grow by 4.4% in 2025.

EPR Properties faces fundamental challenges that contribute to a negative outlook, primarily driven by volatility in its operating portfolio and limited growth prospects in the Experiential sector. The company's reliance on theatrical revenues is concerning, as box office ticket sales have dropped significantly and are projected to remain under pressure due to fewer film releases, which may hinder overall earnings. Furthermore, rising costs of raw materials and labor for development activities, coupled with macroeconomic uncertainties and inflation, could further restrict EPR’s investment opportunities and negatively impact cash flow from its key revenue segments.