Lake Street Capital Markets begins reporting on Friday Mission Production Company . (Nasdaq: ) rates the stock a “buy” rating and sets a price target of $15.00. The company’s analysis shows that despite some challenges in the fiscal year ending March 2024, the company’s performance is stable.
European Real Estate Association (EPRA) earnings per share (EPS) was 0.501 pounds, a year-on-year decrease of 5.6%, in line with the market consensus of 0.50 pounds. The decline was attributed to higher interest costs and the impact of asset disposals.
Mission Produce’s occupancy rate improved and revenue increased 2.8% year over year, helping to mitigate the revenue decline.
EPRA’s net tangible assets (NTA) fell 8.2% annually to £8.59 in fiscal 2024, less severe than the 11.9% decline in the previous year. The loan-to-value (LTV) ratio increased to 35.0% at the end of fiscal 2024 from 31.7% at the end of fiscal 2023.
The company declared a dividend of £0.396, an increase of 2.6% from the previous year. Lake Street Capital Markets maintained its 2025 funds from operations (FFO) forecast at £0.59 and raised its 2026 FFO forecast at £0.60.
The company expressed its continued appreciation for Mission Produce’s portfolio of high-quality properties in the UK, which provide stable rental income.
However, with limited upside to the company’s price target, analysts downgraded the stock to hold from buy. The change reflects analyst views based on current valuation and expected returns, suggesting that while the stock may be stable, the potential for significant price gains in the near term may be limited.
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