BTIG Downgrades Agree Realty (ADC) to Neutral

BTIG analyst Michael Gorman downgraded Agree Realty (NYSE: ADC) from Buy to Neutral.

The analyst comments "We are downgrading shares of Agree (ADC) to Neutral from Buy and removing our $78 PT (BTIG does not provide price targets on Neutral-rated names). ADC has had substantial success in 2024 and 2025, benefiting from a flight to quality in a volatile market. As a result, its relative multiple premium has expanded almost 10x since the end of 1Q24. The shares now trade near a 37% premium to the peer group. ADC has the highest multiple in the sector by more than 1.5x, its premium compares to the 16% 10-year average, and is near the all-time quarterly high of 50%. While valuation is not a catalyst, we have found a relatively significant negative correlation to ADC's multiple premium and 12-month forward returns. This is somewhat surprising as we would expect a stronger cost of capital to drive a cycle of above-average growth, justifying the premium. Perhaps somewhat similarly, while ADC reported another strong quarter for 1Q25 (Link) and substantially raised its investment guidance, that raise did not result in materially better AFFO expectations for the year. We continue to like ADC's portfolio and clean balance sheet, but believe that those benefits are substantially represented at current levels."

For an analyst ratings summary and ratings history on Agree Realty click here. For more ratings news on Agree Realty click here.

Shares of Agree Realty closed at $76.66 yesterday.

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