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KeyBanc Capital Markets upgraded VICI Properties (NYSE:VICI) to an Overweight rating from Sector Weight, while pushing Gaming and Leisure Properties (NASDAQ:GLPI) down to a Sector Weight rating from Overweight.
Analyst Todd Thomas and team see potential for an improving internal growth outlook for VICI materializing amid the higher inflationary backdrop and pointed to the potential for a higher level of accretive investment activity. Those factors are seen helping push 2023 and 2024 estimates higher on VICI and create a performance gap with GLPI and other real estate REITS.
A key point to watch in the casino sector is the extent inflation moderates and if it comes ahead of the respective measurement periods for various leases, including the regional casino and Las Vegas leases.
Shares of VICI gained 1.27% premarket to $34.19, while GLPI peeled off 1.02%.
Compare growth, profitability, and valuation metrics on VICI and GLPI.
