VICI Properties Inc. (VICI), with a market cap of $31.7 billion, is a New York-based real estate investment trust (REIT) specializing in gaming, hospitality, and entertainment properties. Operating in real property business and golf course business segments, it owns a vast portfolio of premier destinations, such as Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas.
Shares of the REIT have underperformed the broader market considerably over the past year. VICI has plummeted 3.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.5%. In 2024 alone, Vici Properties stock fell 4.7%, while $SPX rose 11.2% on a YTD basis.
Narrowing the focus, VICI's price performance trails behind the S&P 500 Real Estate Sector SPDR Fund’s (XLRE) 6.2% gain over the past year.
VICI Properties stock lagged behind the broader indexes over the past year due to sector-wide challenges and market volatility. The REIT sector faced headwinds from rising interest rates, which increased borrowing costs and impacted VICI's performance.
However, shares of VICI Properties rose on May 1 following its robust Q1 earnings results. Moreover, VICI Properties stock rose following strategic actions, including a $250 million mezzanine loan to Great Wolf Resorts on May 9, highlighting the company's dedication to growth through recurring investment opportunities, thereby strengthening its competitive edge.
For the current fiscal year, ending in December, Street expects VICI’s EPS to rise 4.7% year over year to $2.25. Vici Properties’ earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
The consensus rating among the 21 analysts covering VICI stock is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration has been consistent over the past months.
On May 16, Scotiabank analyst Nicholas Yulico reaffirmed his positive outlook on VICI Properties, maintaining the stock's rating at "Sector Outperform." Yulico raised the price target for VICI Properties from $32 to $34, suggesting an upside potential of 11.9%.
Moreover, the mean price target of $35.65 suggests a 17.3% premium to VICI from current levels. The Street-high target of $43 represents an impressive upside potential of 41.5%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
