Jefferies Downgrades Omega Healthcare Investors (OHI) to Hold on Valuation

October 23, 2012 7:27 AM EDT
Get Alerts OHI Hot Sheet
Price: $32.87 -0.36%

Rating Summary:
    4 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 5 | New: 0
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Jefferies downgraded Omega Healthcare Investors (NYSE: OHI) from Buy to Hold with a price target of $24.00 (from $24.00).

The firm comments: "We believe the risk associated with a Medicare cut to SNFs is relatively low in 2013 as the SNF sector is still adjusting to the 11.1% Medicare cut the sector experienced on October 1, 2011. That said, we are downgrading Omega Healthcare Investors (OHI, Hold, $24.01) to a Hold rating from our prior Buy rating.
Our downgrade is mainly valuation based given: 1) the strong 24% YTD performance and current 65.6% premium to NAV, and 2) key catalysts we were looking for (i.e., ratification of Obamacare by the Supreme Court and a favorable 1.8% SNF Medicare reimbursement increase for FY13) have already occurred."

For an analyst ratings summary and ratings history on Omega Healthcare Investors click here. For more ratings news on Omega Healthcare Investors click here.

Shares of Omega Healthcare Investors closed at $24.01 yesterday.

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