Stock Price & Analysis

Buy O stock as it offers a stable 5.6% dividend yield with consistent growth and strong Q4 earnings. Its diversified portfolio and solid acquisition pipeline support long-term growth prospects.

Price Prediction for Realty Income (O) in 2025

Realty Income (O) is expected to reach a price target of $60 by the end of 2025. This prediction is based on the following key factors:

1. Analyst Consensus: The average analyst price target for O is $60.89, with a range of $54.57 to $62.37. This suggests a moderate upside potential of approximately 7.4% from its current price of $56.3754.

2. Fundamental Strength: Realty Income has demonstrated consistent growth in its adjusted funds from operations (FFO) and a strong balance sheet, which supports its ability to maintain and grow its dividend. The company's diversified portfolio and long-term net leases provide stability and predictable cash flows.

3. Technical Analysis: The stock is currently trading near its support level of $55.70, with resistance at $59.39. The relative strength index (RSI) of 32.61 indicates that the stock is not overbought, suggesting potential for upward movement.

4. Market Sentiment: Recent earnings reports and analyst upgrades, such as Barclays raising its price target to $59, indicate positive sentiment towards the stock.

Conclusion

Realty Income (O) is undervalued relative to its peers and has the potential to reach $60 by the end of 2025, driven by its strong fundamentals and positive analyst sentiment.

The S1 support level for O Stock is $55.71 ,The R1 resistant level for O Stock is $57.82.

As of the end of day on 2025-04-01, the price of O Stock was $57.25.

The target price for O Stock according to analyst rating is 60.54, with the highest price target at 65.50 and the lowest at 54.00. Analysts have a Hold rating on O Stock overall.

The market cap of O is $51.0B.

Realty Income (O) appears overvalued based on its current valuation metrics and market sentiment. Here's the analysis:

1. High Valuation Multiples: Realty Income's PE ratio of 48.79 and EV/EBITDA of 54.41 are elevated compared to industry averages, suggesting the stock may be overpriced relative to its earnings and cash flows.

2. Dividend Yield: While the 5.88% dividend yield is attractive, the payout ratio of 80% indicates a high proportion of earnings being distributed, leaving less room for reinvestment.

3. Debt Levels: The debt-to-equity ratio of 0.64 is moderate, but rising interest rates could increase borrowing costs and impact future earnings.

4. Market Sentiment: The stock has been trading below its 200-day moving average, indicating bearish sentiment, and recent earnings guidance was slightly below expectations.

5. Analyst Consensus: The mean price target of $60.89 suggests potential upside, but the current price of $56.37 may not fully reflect the company's fundamentals.

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.

Realty Income (O) stock is expected to reach $80 by 2030, driven by its strong portfolio growth and consistent dividend increases. The company's focus on acquiring high-quality properties under long-term leases positions it well for steady cash flow growth.

O has a total of 418 employees.