UPDATE: Deutsche Bank Upgrades Ventas (VTR) to Buy

Deutsche Bank analyst Derek Johnston upgraded Ventas (NYSE: VTR) from Hold to Buy with a price target of $66.00 (from $61.00).

The analyst comments "We view Ventas (VTR) as an attractive GARP investment within the broader REIT universe and expect the shares to outperform the sector on an absolute and relative basis over the near to midterm (1 to 2 years). As we evaluate the public CRE investment landscape, in a post Covid-19 and Delta variant setting, we are particularly interested in pockets of value with outsized earnings growth potential. Health Care REITs, especially those with senior housing exposure, are now poised to deliver outsized multiyear FFO and same store cash NOI growth given SHOP occupancy has inflected higher while the pandemic created attractive external growth investment opportunities. The well capitalized Health Care REITs quickly shifted to offense during the pandemic and were particularly active acquirers of senior housing assets at attractive or accretive valuations - both on normalized occupancy cap rates and high discounts to replacement costs. The convergence of these two earnings drivers are further cemented by the secular tail wind arriving in 2022, as the baby boomer generation ages into the prime independent living social life-style and assisted living needs based care options. Beginning in 2022, >2MM seniors annually should attain the age of ~75 over the next decade, creating a secular demand driver just as the near to midterm competitive supply outlook is more benign. We upgrade VTR to Buy with a target price of $66."

For an analyst ratings summary and ratings history on Ventas click here. For more ratings news on Ventas click here.

Shares of Ventas closed at $56.31 yesterday.

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