UBS Maintains a 'Neutral' on Omega Healthcare Investors (OHI); SNF NF Storm Clouds Parting
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Price: $46.57 +0.09%
Rating Summary:
10 Buy, 15 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
10 Buy, 15 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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UBS maintains a 'Neutral' on Omega Healthcare Investors (NYSE: OHI) price target raised from $17 to $21.
UBS analyst says, "Better cost mitigation bringing clearer skies to CMS storm clouds: TTM EBITDAR / rent coverage (as of Sept. 30th ) was flat q/q at 1.8x. However, the impact of last Fall’s 11.1% Medicare cuts will begin to felt in Q1 results. While initial expectations called for a ~40bp reduction to coverage, we are encouraged by OHI’s observations of better cost mitigation in Oct/Nov which should mitigate the impact. That said, EBITDAR / rent coverage could slide a bit lower in 2013 when the additional 2% Medicare rate cuts are enacted. Further, we note OHI’s proforma coverage metrics do not fully include future contractual rent escalators...Our new ‘12/’13 FFO estimates of $2.07/$2.15 (from $1.94/$2.07) reflect higher investment activity."
For an analyst ratings summary and ratings history on Omega Healthcare Investors click here. For more ratings news on Omega Healthcare Investors click here.
Shares of Omega Healthcare Investors closed at $21.93 yesterday.
UBS analyst says, "Better cost mitigation bringing clearer skies to CMS storm clouds: TTM EBITDAR / rent coverage (as of Sept. 30th ) was flat q/q at 1.8x. However, the impact of last Fall’s 11.1% Medicare cuts will begin to felt in Q1 results. While initial expectations called for a ~40bp reduction to coverage, we are encouraged by OHI’s observations of better cost mitigation in Oct/Nov which should mitigate the impact. That said, EBITDAR / rent coverage could slide a bit lower in 2013 when the additional 2% Medicare rate cuts are enacted. Further, we note OHI’s proforma coverage metrics do not fully include future contractual rent escalators...Our new ‘12/’13 FFO estimates of $2.07/$2.15 (from $1.94/$2.07) reflect higher investment activity."
For an analyst ratings summary and ratings history on Omega Healthcare Investors click here. For more ratings news on Omega Healthcare Investors click here.
Shares of Omega Healthcare Investors closed at $21.93 yesterday.
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