NETSTREIT Corp (NTST) Stock Forecast & Price Target

Netstreit Corp demonstrates a robust financial outlook characterized by a lower cost of equity, which has increased by 30% year-to-date, resulting in an implied AFFO yield of 7.2%. The company’s investment spreads have also shown improvement, currently at 120 basis points, a significant increase of 100 basis points year-to-date. Additionally, forecasts suggest that AFFOPS growth is expected to accelerate to 6% by 2027, indicating a positive trend in the company's operational performance and investment potential.

Netstreit Corp faces several fundamental challenges that contribute to a negative outlook for its stock, including a notable decline in annualized base rent (ABR) exposure for key tenants such as Family Dollar and Walgreens, indicating increasing tenant credit and concentration risk. The company struggles with a limited ability to source sufficient accretive acquisitions amid rising interest rates, which could impact cash flows and lead to potential dividend cuts due to lost net operating income (NOI). Additionally, the continuing trend of tenant bankruptcies further complicates the company's financial positioning and heightens the risk associated with its revenue stability.