Citizens has maintained its Market Outperform rating on Gaming and Leisure Properties (NASDAQ:GLPI) and held its price objective at $55.00. The equity is trading at $47.35, which InvestingPro analysis flags as undervalued relative to its Fair Value assessment.
The firm pointed to Gaming and Leisure's fourth-quarter 2025 earnings and management's outlook for 2026 as both having come in above consensus expectations. Citizens highlighted that the company currently has a number of highly accretive investments in progress.
On the balance sheet, management has continued to demonstrate financial discipline, according to Citizens. The analyst note states the investment pipeline is effectively funded while the company preserves its long-term leverage targets, a point Citizens uses to validate the firmness of the balance sheet.
Looking ahead, Citizens expects 2026 to be an active year for the REIT, with several funding projects already in motion. The firm said the company remains opportunistic in sourcing investments that are expected to have favorable implications for the bottom line.
In valuation terms, the shares trade at the mid-11x level of 2026 estimated AFFO per share. Citizens characterizes this as a two-turn discount to the net-lease REIT peer group and to the company's historical multiple, a gap the analyst considers highly compelling given anticipated bottom-line growth and a fully funded dividend yield of 6.59%.
Further financial markers cited in the analysis include a gross profit margin of 93.71% and a "GREAT" financial health score assigned by InvestingPro, which the note points to as part of a comprehensive Pro Research Report covering GLPI's key metrics and growth drivers.
Other recent broker activity and company developments were also noted. Gaming and Leisure reported a leverage ratio of 4.4x for the third quarter, which Citizens and other firms referenced as indicating financial stability. UBS reaffirmed a Buy rating and a $58.00 price target, noting the company's borrowing capacity to support 2026 funding needs. Mizuho upgraded the stock from Neutral to Outperform and kept a $50.00 price target. Stifel nudged its price target to $47.75 while maintaining a Hold rating. JPMorgan moved the stock to Overweight with a $53.00 price target, citing expected positive capital commitments through 2027.
Corporate governance changes were also reported: the company has appointed Michael Borofsky to its Board of Directors, bringing the board to eight members. Citizens framed these items collectively as evidence of a period of strategic growth and deliberate financial planning at Gaming and Leisure Properties.
Key points
- Citizens reiterated Market Outperform on GLPI with a $55.00 target; shares trade at $47.35 and are flagged as undervalued by InvestingPro.
- Q4 2025 results and the 2026 outlook topped consensus; multiple accretive investments are underway and the pipeline is reported as funded while maintaining long-term leverage targets.
- Shares trade at mid-11x 2026 estimated AFFO with a fully funded dividend yield of 6.59% and a gross profit margin of 93.71%.
Sectors impacted: Real estate investment trusts (REITs), gaming and entertainment property owners, and capital markets.
Risks and uncertainties
- Execution and funding risk for the active 2026 projects - the company has projects underway and a funding program in progress.
- Valuation gap persistence - the shares trade at a mid-11x 2026 estimated AFFO, a discount versus peers and history that may remain if market sentiment does not change.
- Leverage considerations - the company reported a 4.4x leverage ratio for the third quarter, a metric cited as indicating stability but which also reflects ongoing indebtedness levels.