Stock Price & Analysis

Based on the provided data, let me analyze Realty Income (O) stock:

Technical Analysis

The stock is currently trading at $54.13, showing a relatively flat performance with only +0.32% change in regular market hours. The stock is trading near its Fibonacci pivot point of $53.55, with immediate resistance at $55.03 and support at $52.06.

Fundamental Analysis The RSI-14 reading of 50.99 indicates neutral momentum, while the MACD at -0.17 suggests slight bearish pressure in the near term. The stock is currently trading above its 20-day SMA of $53.24, indicating some short-term strength.

Analyst Sentiment Recent analyst actions show mixed sentiment:

• Scotiabank maintained Hold rating with $59 PT (8.1% upside) on Jan 16, 2025
• Mizuho lowered PT to $54 from $60 (2.8% upside) on Jan 8, 2025
• Stifel maintains Strong Buy with $67 PT (26.6% upside) on Jan 8, 2025

Catalysts

• Upcoming Q4 earnings release on February 18, with analysts expecting FFO of $1.06 per share, a 5% increase YoY
• The company's revenue is expected to show 25.1% growth compared to the same quarter last year

Risk Factors

• Interest rate environment remains a key concern
• The stock has underperformed, declining 4.5% over the past year compared to S&P 500's 26.5% gain
• Portfolio occupancy showed marginal YoY decrease in recent quarters

Recommendation Based on current price levels and mixed signals, HOLD recommendation is appropriate. While the company has strong fundamentals and analyst support with upside potential, current market conditions and technical indicators suggest waiting for a more attractive entry point.

Based on the provided data and market analysis, here is the price prediction for Realty Income (O) stock in 2025:

The stock price of Realty Income (O) is expected to reach $61.37 by end of 2025, representing a 12.3% upside from current levels, driven by strong fundamentals and analyst optimism. The company's upcoming Q4 earnings announcement on February 18, with analysts expecting an FFO of $1.06 per share, shows continued growth momentum.

The prediction is supported by several key factors:

1. Despite recent underperformance (-4.5% over past year), analysts maintain a "Moderate Buy" rating with 6 Strong Buy, 1 Moderate Buy, and 16 Hold recommendations.

2. The company's strategic acquisition of Spirit Realty and new funding approach through private capital markets positions it well for accretive growth.

The S1 support level for O Stock is $52.12 ,The R1 resistant level for O Stock is $55.09.

As of the end of day on 2025-01-24, the price of O Stock was $54.38.

The target price for O Stock according to analyst rating is 62.21, with the highest price target at 71.00 and the lowest at 54.00. Analysts have a Moderate Buy rating on O Stock overall.

The market cap of O is $47.6B.

Based on the provided data and context, here's my analysis of whether O is overvalued:

Valuation Analysis: O currently trades at 13x forward AFFO, which is significantly below its historical average valuation multiples of 17-24x. The current P/E ratio of 60.15x in Q3 2024 appears high but needs to be viewed in context of the REIT's stable income-generating business model.

Recent Performance: The stock trades at $54.23, down about 7% over the past year and significantly underperforming the broader market. This decline has made valuations more attractive compared to historical levels.

Analyst Consensus: Recent analyst ratings show a mixed but generally neutral stance, with price targets ranging from $54-67, suggesting the stock is fairly valued to slightly undervalued at current levels. The most recent actions include Scotiabank maintaining a Hold rating with a $59 target and Mizuho lowering their target to $54 while maintaining a Hold rating.

Growth Prospects: O continues to demonstrate solid fundamentals with a 98.7% portfolio occupancy rate and over 15,400 properties. However, some concerns exist around tenant quality, particularly with top tenants like Dollar General and Walgreens facing challenges.

Based on these factors, O appears fairly valued to slightly undervalued at current levels, particularly given its reliable dividend yield of 4.92% and strong underlying property portfolio.

Realty Income Corporation is a real estate investment trust. The Company is engaged in acquiring and managing freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients. It is engaged in a single business activity, which is the leasing of property to clients, generally on a net basis. That business activity spans various geographic boundaries and includes property types and clients engaged in various industries. The Company owns approximately 15,450 properties across 86 different industries leased to over 1,300 different clients throughout all 50 states, as well as Puerto Rico, the United Kingdom, Spain, Italy, Ireland, France, Germany and Portugal. Its property types include retail, industrial, gaming and others, such as agriculture and office. Its primary industry concentrations include grocery stores, convenience stores, dollar stores, drug stores, home improvement, restaurants-quick service and others.

Based on the provided data and market analysis, here is the price prediction for Realty Income (O) stock by 2030:

The stock price of Realty Income (O) is projected to reach $75-80 by 2030, representing a potential upside of approximately 40-48% from current levels around $54. This forecast is supported by three key factors:

1. Strong Industry Position: Realty Income continues to demonstrate resilience through its high-quality portfolio of over 15,400 properties across 49 states. The company's new funding strategies and private capital market access will enhance its acquisition capabilities without heavily relying on external capital.

2. Dividend Growth & Income: The company has maintained an impressive track record of 128 dividend increases since going public in 1994, with 30 consecutive years of dividend growth. This consistent dividend growth pattern suggests continued strong operational performance and cash flow generation.

3. Market Recovery: With analysts expecting inflation to continue subsiding and interest rates potentially falling back to 3.5% rather than rising to 5%, REITs like Realty Income should benefit from a more favorable rate environment. The company currently maintains a "Moderate Buy" rating from Wall Street analysts with an average price target of $61.37.

O has a total of 418 employees.