By Michael Elkins
Mizuho initiated coverage of VICI Properties (NYSE:VICI) with a Buy rating and set a $35.00 price target on the stock as analysts view the company as one of the highest-quality portfolios amongst REITs, and the gaming sector, and believe the company is benefiting from elevated gross gaming revenue (GGR) and strong alignment with local governments.
They expect VICI to outperform in the current macro given its elevated exposure to CPI-linked leases, structural safety, and high-quality portfolio as investors look for defensive names.
Analysts wrote in a note, “VICI's portfolio spans 50 properties across 15 states & Canada, with a ~$33B equity market cap. VICI's portfolio is ~47% exposed to the Las Vegas Strip, with the balance in regional assets. Properties in VICI's portfolio are market leaders and tend to be the "upscale" option in their markets.”
Mizuho introduced FY23 & FY24 AFFO/sh estimates of $2.12 and $2.22, respectively. Estimates do not reflect any speculative transaction activity or any draw-downs on its facilities to The Venetian and Hard Rock. Separately, Mizuho introduced a NAV/sh estimate of $32/sh.
Shares of VICI are up 0.31% in pre-market trading on Wednesday.