KeyBanc Upgrades Healthcare Realty Trust (HR) to Buy, Growth Strategy and Healthcare Fundamentals Improving

September 20, 2012 8:50 AM EDT Send to a Friend
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Price: $26.16 -5.05%

Rating Summary:
    1 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 17 | New: 15
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KeyBanc upgraded Healthcare Realty Trust (NYSE: HR) from Hold to Buy with a price target of $28.00.

The firm comments, "Our upgrade is based on our improving view of the Company’s growth strategy and healthcare fundamentals, as well as on a recent spike in private market valuations for medical office buildings (MOBs). First, we expect significant increases in HR’s NOI and NAV in coming quarters, as its non-stabilized development portfolio is poised to increase occupancy from 51% today to 80%+ by late 2013. Second, we favor recent upgrades to HR’s portfolio quality and tenant credit. Additionally, the increasing likelihood of a second Obama term and continuing health care reform initiatives should accelerate medical office demand, in our view. Finally, recent underperformance in the stock, combined with a steep drop in MOB cap rates, has provided an attractive entry point, in our view."

For an analyst ratings summary and ratings history on Healthcare Realty Trust click here. For more ratings news on Healthcare Realty Trust click here.

Shares of Healthcare Realty Trust closed at $23.80 yesterday.

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