Welltower, Inc. (WELL) PT Raised to $137 at Deutsche Bank

Deutsche Bank analyst Omotayo Okusanya raised the price target on Welltower, Inc. (NYSE: WELL) to $137.00 (from $115.00) while maintaining a Buy rating.

The analyst comments "While the stock has rallied since the start of the year (+28.1%), we still see meaningful upside for WELL. 1H24 has been characterized by earnings beats and not one, not two, but three guidance raises for FY24 already. During the 2Q24 earnings season, WELL's management team raised its 2024 FFO/sh outlook to a range of $4.13 to $4.21 (versus $4.05 to $4.17 previously), with a midpoint of $4.17 ($4.11 previously) that implies healthy y/y earnings growth of 14.5%. WELL also raised its SHOP same-store (SS) NOI growth outlook to a range of +19.0% to +23.0% (versus +17.0% to +22.0% previously). We believe that 2H24 will be more of the same, driven by continued strength within the senior housing operating portfolio (SHOP) and a best-in-class balance sheet and cost of capital that will continue to drive investment activity. Altogether, WELL continues to deliver sector leading FFO growth, which we believe justifies the premium multiple (~26.9x P/FFO) versus the Healthcare REIT average (~14.2x P/FFO ex WELL), and also versus Ventas - its closest comp (VTR trades at ~18.0x P/FFO)."

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