Are Wall Street Analysts Bullish on Realty Income Stock?
San Diego, California-based Realty Income Corporation (O) acquires and manages freestanding commercial properties that reap rental revenue under long-term net lease agreements. With a market cap of $50.8 billion, Realty Income’s portfolio consists of thousands of commercial properties leased to numerous clients across 90+ industries.
The real estate giant has lagged behind the broader market over the past year but outperformed in 2025. Realty Income’s stock has gained 6.7% on a YTD basis and 3.7% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 3.3% dip on a YTD basis and 12.3% surge over the past year.
Narrowing the focus, Realty Income has outpaced the Real Estate Select Sector SPDR Fund’s (XLRE) 3.1% uptick on a YTD basis, while lagging behind XLRE’s 14.2% returns over the past year.
Realty Income’s stock prices dropped 1.9% in the trading session after the release of its mixed Q4 results on Feb. 24. Driven by an increase in demand and rentals, the company’s revenues soared 24.5% year-over-year to $1.3 billion. However, the company also observed a steep increase in depreciation, interest expense and provision for impairment, leading to a decline in profitability. Nonetheless, its adjusted funds from operations (AFFO) to common shareholders increased 26.1% year-over-year to $921.9 million, but due to a surge in the number of outstanding shares, its AFFO per share inched up by a modest 4% year-over-year to $1.05 and missed the Street’s expectations by nearly 1%.
For the current fiscal 2025, ending in December, analysts expect the REIT to deliver a 1.9% year-over-year growth in AFFO per share to $4.27. While Realty Income has missed the Street’s AFFO estimates once over the past four quarters, it has matched or surpassed the projections on three other occasions.
Realty Income has a consensus “Moderate Buy” rating overall. Of the 23 analysts covering the stock, opinions include five “Strong Buys,” one “Moderate Buy,” and 17 “Holds.”
This configuration is slightly less bullish than three months ago, when six analysts gave “Strong Buy” ratings.
On Apr. 22, Barclays (BCS) analyst Richard Hightower reiterated an “Overweight” rating on the stock, while lowering the price target from $59 to $58.
Realty Income’s mean price target of $60.84 indicates a 6.8% premium to current price levels, while its Street-high target of $65.50 suggests a 15% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.