Spirit Realty defended at Deutsche

|About: Spirit Realty Capital (SRC)|By:, SA News Editor

Shares had a quick tumble yesterday, eventually closing down 2.25% after a report saying struggling tenant Shopko may be put up for sale. Challenges associated with Shopko have been "more than priced in," says Deutsche's Vin Chao.

Spirit (NYSE:SRC) did fall quickly yesterday afternoon, but more interesting to Chao was the quick rebound into the close, suggesting smart money is ready to buy any Shopko-related dip. He'll be on the lookout for any sell-side downgrades today.

Meanwhile, Mizuho's Haendel St. Juste reminds that Spirit is spinning off Shopko, and the remaining company faces more limited risks.

Both analysts continue to rate the stock a Buy.

Source: Bloomberg