Why Ventas Stock Rallied More Than 10% in April
Shares of Ventas (NYSE: VTR) jumped 10.8% in April, according to data provided by S&P Global Market Intelligence. The healthcare real estate investment trust's (REIT) rally came despite some mixed views from analysts last month. The REIT also took a step to address some upcoming debt maturities as it works to strengthen its balance sheet.
Several analysts updated their price targets on Ventas last month. RBC Capital analyst Michael Carroll lowered his price target from $56 to $54 per share while keeping his outperform rating on the stock. The driver was the company's plan to take ownership of the full pool of assets serving as collateral on a $486 million loan to Santerre Health Investors. The portfolio includes 88 medical office buildings, 16 senior housing operating properties, and 48 skilled nursing facilities and hospital assets. The RBC analyst believes the conversion will negatively impact Ventas' funds from operations (FFO) by $0.02 per share this year. It will also increase the company's leverage because Ventas will assume a $1 billion loan on the properties that matures this June, but it can extend for a year.
Credit Suisse analyst Tayo Okusanya lowered his price target on Ventas last month. The analyst reduced it from $51 to $50 per share while keeping his outperform rating. He believes Ventas' 2023 guidance will be lower than expected and that it must delever following the Santerre transaction.
Source Fool.com
Ventas Inc. Stock
With 12 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
With a current price of 55.92 € Ventas Inc. is right around the predicted target price of 56 €.
