Jefferies Cuts Price Target Following Health Care REIT (HCN) Investor Day

Jefferies maintains a Hold rating on Health Care REIT (NYSE: HCN), and cut the price target to $78.00 (from $82.00), following HCN's investor day. Analyst Omotayo Okusanya said that HCN should trade at a premium versus is peers.

Okusanya commented, "We came away from HCN's investor day on 05/28 in Indianapolis impressed with management's forward thinking regarding how to position HCN for future growth against the backdrop of an evolving healthcare industry. The focus on creating connectivity amongst its strategic partners along the healthcare delivery spectrum suggests HCN should be a partner of choice amongst operators, which should lead to better returns in the long run versus the peer group."

Okusanya also added, "While we remain positive on the HCN story, we continue to struggle with valuation despite our view that HCN should trade at a premium versus its peers given it has one of the very best in class platforms in the sector. We are actually lowering our 2015/2016E FFO/sh to $4.36 and $4.64 from $4.39 and $4.71 respectively to reflect slower SS NOI growth in the SHOP portfolio. As such, our PT declines to $78 from $82. We maintain our HOLD rating."

For an analyst ratings summary and ratings history on Health Care REIT click here. For more ratings news on Health Care REIT click here.

Shares of Health Care REIT closed at $70.83 yesterday.

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