In a report released today, Ronald Kamdem from Morgan Stanley maintained a Buy rating on Healthpeak Properties (DOC – Research Report), with a price target of $24.00.
Ronald Kamdem has given his Buy rating due to a combination of factors including Healthpeak Properties’ solid performance in certain business segments and strategic financial maneuvers. The company’s outpatient medical and CCRC businesses have shown robust growth, which is a positive indicator for future performance. Additionally, the recent stock buybacks amounting to approximately $94 million signal confidence in the company’s valuation and provide potential downside protection for investors.
Another factor influencing the Buy rating is the company’s financial metrics, such as a dividend yield of 6.5% and leverage at 5.3x, which are considered favorable. Despite some concerns about the deceleration in SS-NOI growth and potential impacts from government funding cuts, the stock’s current trading at a significant discount to the REIT group suggests that expectations may have already been adjusted, providing an attractive entry point for investors.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $24.00 price target.