Price Target Increase#
Cantor Fitzgerald has raised its price target for Netstreit Corp. (NYSE: NTST) from $22 to $24, while maintaining an Overweight rating on the stock. Currently, shares are trading at $20.91, close to their 52-week high of $21.30. Over the past year, Netstreit has delivered a notable 33% return to its investors.
Growing Investment Volume#
The firm’s decision comes as Netstreit has increased its annual guidance for net investments to $600 million, up from a previous estimate of $400 million. This increase indicates a strong outlook for investment volume. Additionally, Netstreit has $605 million in unsettled forward equity, which is expected to fully support its investment plans.
Adjusted Funds from Operations#
Netstreit has also raised the lower end of its annual adjusted funds from operations (AFFO) guidance by one cent, now projecting a range of $1.36 to $1.39. AFFO is a measure used to evaluate a real estate investment trust's (REIT) performance, reflecting cash generated from operations. The new guidance accounts for changes in accounting practices that slightly diluted AFFO per share.
Recent Earnings and Strategic Moves#
In its first-quarter 2026 earnings report, Netstreit posted earnings per share (EPS) of $0.06, which fell short of the expected $0.07, marking a 14.29% negative surprise. However, revenue reached $57.06 million, exceeding expectations of $50.73 million, resulting in a positive surprise of 12.48%. Furthermore, Netstreit has initiated a new at-the-market (ATM) equity offering program, allowing it to raise up to $400 million through various financial institutions. This program is part of the company’s strategic financial maneuvers in response to its mixed earnings performance.