In a bid to raise funds to finance acquisitions and meet other capital requirements, Agree Realty (ADC) has confirmed the pricing of 4 million shares of its common stock. The real estate investment trust company, which acquires and develops properties for leasing, expects $286 million from the underwritten public offering before the deduction of offering expenses.
Agree Realty will also grant underwriters a 30-day option to purchase an additional 600,000 shares of its common stock. Citigroup is the underwriter of the public offering. (See Agree Realty stock analysis on TipRanks)
A part of the net proceeds from the offering is to finance development activities. Furthermore, they are to finance working capital and other general corporate purposes. Agree Realty also intends to use a part of the net proceeds to reduce debt.
Mizuho analyst Haendel St. Juste believes that Agree Realty has little upside potential from current levels. According to the analyst, the stock is fully valued at current levels. Consequently, the analyst has downgraded the stock to Hold from Buy with $73 price target, implying 2% upside potential from current levels.
Consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average analyst Agree Realty price target of $76 implies 6.20% upside potential from current levels.
The company scores 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.