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CBRE Equity Research backed a Buy rating on Gaming and Leisure Properties (NASDAQ:GLPI) after factoring in the company's narrow Q3 earnings beat. The upside vs. downside risk case on the stock is seen as still favorable. Positive factors seen for the company are that it continues to expand its tenant relationships and find accretive deals in the gaming sector, although at a slower pace given the current capital market and economic conditions.
Analyst John DeCree said Gaming and Leisure (GLPI) remains focused on its regional gaming core competency. He noted that GLPI management still sees most of its opportunity in the gaming sector, but could break the mold if an unusually compelling opportunity arose.
"We appreciate the focus and agree that there is still notable opportunity in regional gaming, in terms of quality, quantity, and valuation relative to other entertainment and leisure sectors, particularly given the durability of cash flow."
DeCree also pointed out that the environment for regional gaming real estate is less competitive than other entertainment sectors due to the higher barriers of entry that include regulatory licensing, relationship management, and operational knowledge.
CBRE lowered its price target on Gaming and Leisure Properties (GLPI) to $57 from $58, which represents a 15X multiple on the firm's FY24 AFFO per share estimate. The Seeking Alpha Quant Rating on GLPI is at Hold.
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