UBS Analyst Upgrade Gaming and Leisure Properties Stock amid an Upcoming Merger with its Peer Group


Gaming and Leisure Properties (NASDAQ: GLPI) stock was among the best performing real estate names on Wednesday. This is after an analysts upgrade the shares amid a merge with its peer group.

UBS analyst Robyn Farley on Wednesday lifted her rating for GLPI placing a $54 price target on the stock. That is equivalent to a 17.4 percent upside from its 3rd August closing.

Farley noted that the real estate investment trust (REIT) had shown impressive resilience and strength in 2020. Farley further added that GLPI unexpectedly reached its target in May 2021 escalators.

Farley noted that GLPI’s potential lies with the Tropicana Las Vegas that could present gripping redevelopment. GLPI is currently working with Tropicana on plans to develop its 35-acre property.

In the second quarter earning conference, GLPI CEO Peter Carlino indicated a possibility of the firm adding more properties.

“We’re working cooperatively with them to figure out how we can maximize whatever occurs there. And I’m just here to say that we are considering the maximization of every inch of that property.”

Apart from highlighting GLPI’s projects and debt reduction efforts, Farley also highlighted how the REITs net lease has tripled when it comes to geographic and tenant diversification. On Wednesday, VICI Properties (NYSE: VICI) announced that it is acquiring MGM Growth Properties (NYSE; MGP) for $17.2 billion in stock. The two companies combined will rent 45 percent of Las Vegas gaming properties.


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