National Retail Properties downgraded after nice run

The good news is baked into the stock, says analyst Daniel Altscher, downgrading National Retail Properties (NNN) to Market Perform from Outperform. He notes the name has generated a 15% total return since he made it an Outperform last August vs 13.7% for the S&P 500, and it's up 15% YTD vs. the S&P up 1.6%.

"As we sit here today, we think the stock is more appropriately valued at over 17x our 2014E FFO of $2.04. This is particularly the case given that we have already taken the liberty of increasing our 2014E FFO above guidance to a level that we think is more representative of where it could actually shake out by year-end."

"Fundamentally, we still think there is a lot to like about the National Retail Properties story, and if the stock pulled back to a valuation that we thought was attractive like we did in August 2013, we could potentially look to become more constructive on the name."

See also: Realty Income loses Buy rating at BofA

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