Jefferies Comments and Tweaks Price Targets on Healthcare REIT Sector
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Price: $91.52 +1.36%
Rating Summary:
22 Buy, 12 Hold, 1 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
22 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies is raising its outlook on the HC REIT sector.
An analyst at Jefferies comments, "Our analysis indicates that coverage ratios, combined with cost reduction initiatives at various tenants, should result in minimal impact to cash flows from upcoming Medicare/Medicaid cuts. We are attracted to the dividend yields and earnings growth profiles of both OHI & SBRA. The next catalyst for these stocks will be at the end of November, when the Super Committee presents its budget deficit reduction proposal, which could result in additional cuts to Medicare. We estimate an additional 2% cut, which is manageable at the operator/tenant level in our view."
The firm's top picks for the sector include Ventas (NYSE: VTR), Senior Housing Properties (NYSE: SNH), and Omega Healthcare Investors (NYSE: OHI).
Jefferies cut its price target on shares of Cogdell Spencer (NYSE: CSA) from $6 to $4 and lowered its 2011 FFOM from $0.36 to $0.31. The set its 2012 FFOM at $0.40. The firm currently has a Hold rating on the shares.
The firm reduced its price target on shares of Health Care (NYSE: HCN) from $56 to $53 and has its 2011 and 2012 FFO estimates set at $3.39 and $3.87. The firm currently has a Hold rating on the shares.
Jefferies reduced its price target on shares of HCP, Inc. (NYSE: HCP) from $39 to $37 and has its 2011 and 2012 FFO estimates set at $2.57 and $2.82. The firm currently has a Hold rating on the shares.
Jefferies reduced its price target on shares of Healthcare Realty Trust. (NYSE: HR) from $22 to $18 and has its 2011 and 2012 FFO estimates set at $1.19 and $1.31. The firm currently has a Hold rating on the shares.
Jefferies reduced its price target on shares of Medical Properties (NYSE: MPW) from $12 to $11.50 and has its 2011 and 2012 FFO estimates set at $0.74 and $0.92. The firm currently has a Hold rating on the shares.
Jefferies has a $14 price target on shares of Sabra Healthcare (Nasdaq: SBRA) with a Buy rating and has its 2011 and 2012 FFO estimates set at $1.29 and $1.52.
Jefferies has a $27 price target and Buy rating on shares of Senior Housing Properties (NYSE: SNH) and has its 2011 and 2012 FFO estimates set at $1.79 and $1.98.
Jefferies reduced its price target on shares of Universal Health Realty Income Trust (NYSE: UHT) from $40 to $37 and has its 2011 and 2012 FFO estimates set at $2.52 and $2.56. The firm currently has a Hold rating on the shares.
Jefferies raised its price target on shares of Ventas (NYSE: VTR) from $56 to $60 and has its 2011 and 2012 FFO estimates set at $3.25 and $3.53. The firm also has a Buy rating on the shares.
An analyst at Jefferies comments, "Our analysis indicates that coverage ratios, combined with cost reduction initiatives at various tenants, should result in minimal impact to cash flows from upcoming Medicare/Medicaid cuts. We are attracted to the dividend yields and earnings growth profiles of both OHI & SBRA. The next catalyst for these stocks will be at the end of November, when the Super Committee presents its budget deficit reduction proposal, which could result in additional cuts to Medicare. We estimate an additional 2% cut, which is manageable at the operator/tenant level in our view."
The firm's top picks for the sector include Ventas (NYSE: VTR), Senior Housing Properties (NYSE: SNH), and Omega Healthcare Investors (NYSE: OHI).
Jefferies cut its price target on shares of Cogdell Spencer (NYSE: CSA) from $6 to $4 and lowered its 2011 FFOM from $0.36 to $0.31. The set its 2012 FFOM at $0.40. The firm currently has a Hold rating on the shares.
The firm reduced its price target on shares of Health Care (NYSE: HCN) from $56 to $53 and has its 2011 and 2012 FFO estimates set at $3.39 and $3.87. The firm currently has a Hold rating on the shares.
Jefferies reduced its price target on shares of HCP, Inc. (NYSE: HCP) from $39 to $37 and has its 2011 and 2012 FFO estimates set at $2.57 and $2.82. The firm currently has a Hold rating on the shares.
Jefferies reduced its price target on shares of Healthcare Realty Trust. (NYSE: HR) from $22 to $18 and has its 2011 and 2012 FFO estimates set at $1.19 and $1.31. The firm currently has a Hold rating on the shares.
Jefferies reduced its price target on shares of Medical Properties (NYSE: MPW) from $12 to $11.50 and has its 2011 and 2012 FFO estimates set at $0.74 and $0.92. The firm currently has a Hold rating on the shares.
Jefferies has a $14 price target on shares of Sabra Healthcare (Nasdaq: SBRA) with a Buy rating and has its 2011 and 2012 FFO estimates set at $1.29 and $1.52.
Jefferies has a $27 price target and Buy rating on shares of Senior Housing Properties (NYSE: SNH) and has its 2011 and 2012 FFO estimates set at $1.79 and $1.98.
Jefferies reduced its price target on shares of Universal Health Realty Income Trust (NYSE: UHT) from $40 to $37 and has its 2011 and 2012 FFO estimates set at $2.52 and $2.56. The firm currently has a Hold rating on the shares.
Jefferies raised its price target on shares of Ventas (NYSE: VTR) from $56 to $60 and has its 2011 and 2012 FFO estimates set at $3.25 and $3.53. The firm also has a Buy rating on the shares.
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