Moelis has downgraded its rating for HomeCo Daily Needs REIT (HDN) from “buy” to “hold”. Despite this change in rating, the broker has increased the price target for HDN shares from $1.36 to $1.44. The revised assessment follows the company’s recent earnings result announcement.
HomeCo Daily Needs REIT focuses on owning, developing and managing a portfolio of convenience-based assets across Australia. The REIT aims to provide stable and growing income for its investors through a diversified tenant base and strategic property locations.
According to Moelis, HomeCo’s portfolio demonstrates relative defensiveness. This characteristic, combined with its tenant base, is expected to support continued rental growth for the REIT. Moelis believes this resilience will hold true even amidst a softening macroeconomic environment.
The adjusted price target reflects a moderately optimistic outlook from Moelis, even with the downgrade to a “hold” rating, suggesting limited downside but also reduced potential for significant near-term gains.
