Wedbush Upgrades Ventas (VTR) to Outperform

Wedbush analyst Richard Anderson upgraded Ventas (NYSE: VTR) from Neutral to Outperform, price target $51.00 (from $44.00).

The analyst comments "We have updated our models and price targets for healthcare REIT large caps VTR and WELL, and our changes are summarized in Figure 1. The net result is we are upgrading VTR to Outperform from Neutral, while keeping its more expensive rival WELL at Neutral. This change is not likely to win us many creativity awards as others on the sell-side have identified the large valuation spread between the two and made similar ratings calls to varying degrees of ineffectiveness. However, VTR showed us a decisive response to its Holiday by Atria hiccup during 2Q23, recovering nicely during 3Q23 with that portfolio either transitioned or getting an influx of capital. Both companies appear to be moving into new growth territory with their senior housing portfolios, as same store NOI growth goes from the teens to the twenties -- a theme we expect to continue in 2024. However, one only needs a 19x AFFO multiple for VTR to get 15% price upside, whereas our new WELL target gets us 2% upside assuming a 27x valuation."

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 $44.28 yesterday.

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