Why Medical Properties Trust Stock Plunged 20% in March
Shares of Medical Properties Trust (NYSE: MPW) fell another 20.2% in March, according to data provided by S&P Global Market Intelligence. With that sell-off, shares of the healthcare real estate investment trust (REIT) are now down over 60% in the past year.
A couple of analysts downgraded shares of the hospital owner last month, which weighed down the stock price. However, it also made moves toward the end of March aimed at helping address some issues.
Analysts from BofA and Truist downgraded their view on Medical Properties Trust last month. BofA analyst Joshua Dennerlein cut his rating on the stock from buy to neutral while slashing the price target from $13 to $10 per share. The analyst called the REIT's valuation "compelling," but he said the stock has become a "show-me story." Medical Properties needs to resolve the situation with one of its tenants, Prospect Medical, which is facing financial hardship. It must also improve its debt costs and avoid dilutive refinancings and asset sales.
Source Fool.com
