UPDATE: BofA Securities Downgrades Medical Properties Trust (MPW) to Neutral
(Updated - July 6, 2021 8:53 AM EDT)
BofA Securities analyst Joshua Dennerlein downgraded Medical Properties Trust (NYSE: MPW) from Buy to Neutral while cutting the price target to $21.50 (from $25.00) on the belief that MPW will trade sideways until it can announce permanent equity capital for its recently announced transactions ($2B) and bring leverage back to its historical range (we estimate pro-forma leverage of 6.7x vs their target of 5.0-6.0x).
The analyst stated "we estimate that MPW may need to raise roughly $1.1-2.7B of equity to fund announced transactions and lower leverage to its target range. We note that MPW will likely target 6x leverage requiring roughly $1B."
Shares of Medical Properties Trust closed at $20.60 yesterday.
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