Mizuho Securities Downgrades Welltower, Inc. (WELL) to Neutral on Valuation
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Mizuho Securities analyst Omotayo Okusanya downgraded Welltower, Inc. (NYSE: WELL) from Buy to Neutral with a price target of $57.00.
The analyst commented, "Our fundamental thesis on both names is still intact, but given where valuations are, we believe a neutral stance is more appropriate. At PEAK, we are incrementally concerned about the outlook for the dividend, as it appears the payout ratio on an FAD basis will remain elevated for a prolonged period, and therefore management may decide to right-size the dividend to free up capital for the attractive life sciencesfocused development pipeline. At WELL, we continue to be impressed with the capital recycling story, but the outsized exposure to senior housing could create disproportionate pressure on earnings growth in 2021. We are downgrading both names to NEUTRAL from Buy."
Shares of Welltower, Inc. closed at $55.05 yesterday.
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