Wells Fargo Downgrades LTC Properties (LTC) to Market Perform; Stock Valuation Appear Full
LTC Hot Sheet
Rating Summary:2 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Wells Fargo downgraded LTC Properties (NYSE: LTC) from Outperform to Market Perform with a price target range $30-$32.
Wells analyst says, "Both skilled nursing operators and landlords came under pressure in 2011 due to CMS’s midyear announcement of an 11.1% Medicare reimbursement reduction. Pure-play SNF landlord OHI’s shares led the group to the downside following the initial news. LTC and other landlords with higher-than-average SNF portfolio exposure traded down as well. However, many of the names in the REIT space with SNF exposure have seen their share prices return to pre-announcement levels. For example, Omega Healthcare (NYSE: OHI) shares have increased 47% on a total return basis and LTC Properties (NYSE: LTC) shares have risen 50% from August 2011 lows; this compares to the RMS up 26%. We believe that much of this relative outperformance was due to a recovery for most landlords with skilled nursing exposure that shot too far to the downside and given that rent coverage across the space remains adequate even post reduction. As a result, we believe that the shares of both companies are fully valued currently."
For an analyst ratings summary and ratings history on LTC Properties click here. For more ratings news on LTC Properties click here.
Shares of LTC Properties closed at $31.55 yesterday, with a 52 week range of $20.40-$32.25.
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Wells analyst says, "Both skilled nursing operators and landlords came under pressure in 2011 due to CMS’s midyear announcement of an 11.1% Medicare reimbursement reduction. Pure-play SNF landlord OHI’s shares led the group to the downside following the initial news. LTC and other landlords with higher-than-average SNF portfolio exposure traded down as well. However, many of the names in the REIT space with SNF exposure have seen their share prices return to pre-announcement levels. For example, Omega Healthcare (NYSE: OHI) shares have increased 47% on a total return basis and LTC Properties (NYSE: LTC) shares have risen 50% from August 2011 lows; this compares to the RMS up 26%. We believe that much of this relative outperformance was due to a recovery for most landlords with skilled nursing exposure that shot too far to the downside and given that rent coverage across the space remains adequate even post reduction. As a result, we believe that the shares of both companies are fully valued currently."
For an analyst ratings summary and ratings history on LTC Properties click here. For more ratings news on LTC Properties click here.
Shares of LTC Properties closed at $31.55 yesterday, with a 52 week range of $20.40-$32.25.
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
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