2 REITs Stifel Just Hiked Targets At

On Wednesday, Stifel just set price target increases for two triple-net REITs National Retail Properties, Inc.

and Realty Income Corp

. Stifel increased its target price from $41.00 to $43.00 for National Retail Properties, citing the business model should continue to work next year; and also raised its target price from $52.00 to $54.00 for Realty Income, with the research firm seeing another solid year ahead for the company. Mainly, the research firm expects National Retail Properties to do well next year, believing NNN should continue to outperform in 2016. "We think sector performance will once again be led by the companies with the consistent earnings growth, low costs of capital, solid balance sheets, and quality management teams. We think the strong will continue to get stronger.," Stifel commented. Stifel sees Reality Income continuing to get stronger. "The company has a long-term history of creating value for shareholders despite its large size while maintaining a very conservative balance sheet. The company remains disciplined, generating consistent annual earnings growth through prudent capital allocation and investment discipline," the firm noted. Realty Income's large transaction could result in outsized earnings growth. Investors can "sleep well at night" with investing in Realty Income. Stifel views the company as a "safe and stable" name in the sector with steady growth in cash flow per share and NAV. "This can be attributed to its diverse portfolio and well capitalized balance sheet. Since its IPO, the company has annual returns north of 16.5%, outpacing the RMS/RMZ and all the major indices. The name should be a core holding for investors," the firm commented.