Macro Trends & M&A Activity Forecasts Lead to Overweight Stance on Essential Properties (EPRT)

Essential Properties Realty Trust (NYSE:EPRT) is one of the most favored real estate investment trusts according to Hedge Funds.

On January 13, Richard Hightower from Barclays reaffirmed his Overweight rating for Essential Properties Realty Trust (NYSE:EPRT). The analyst also raised his price target from $36 to $37, which now results in an upside of 20%.

Hightower’s upward revision of price target is part of Barclays’ 2026 outlook for real estate investment trusts. The firm has a Neutral outlook for REITs after making adjustments to their forecasts. However, there is some optimism surrounding rentals from apartment buildings, single-family units, and storage properties.

On January 5, Cantor Fitzgerald analyst Jay Kornreich maintained his positive Outlook for Essential Properties Realty Trust (NYSE:EPRT). He assigned an Overweight rating to the stock and lowered his price target from $36 to $35, which still yields an upside of 13.5% from the current level.

Kornreich highlighted lagging returns from REITs during 2025, which will rebound in the coming year. Several catalysts will support the rally, such as macroeconomic strength, demand-supply balance, and acceleration in M&A activity.

Essential Properties Realty Trust (NYSE:EPRT) is involved in the acquisition and ownership of single-tenant commercial properties, which it leases to mid-market tenants through sale-leaseback transactions. These tenants include professional service and retail businesses such as convenience & grocery stores, restaurants, medical & dental clinics, car washes, and more.

While we acknowledge the potential of EPRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.