National Retail Properties downgraded after nice run

|About: National Retail Properti... (NNN)|By:, SA News Editor

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