Mitsubishi UFJ Securities (USA) Inc. analyst initiatedcoverage of Realty IncomeCorp. with a rating of "neutral," and a price target of$60.
The analyst wrote in a research report: "We areinitiating coverage of Realty Income (O) with a Neutral rating and a $60 pricetarget. O's predictable and diversified cash flows are attractive in a 'risk-off'environment, in our view. Also, we expect O's acquisitions, including potentialM&A, made at historically wide investment spreads to generate substantialNAV growth and earnings upside. That said, the stock's peak valuation fairlyreflects those advantages, in our view, and we foresee moderate multiple riskif the market returns to a 'risk-on' stance or if investments disappoint."