Global Medical REIT (GMRE – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Barry Oxford from Colliers Securities maintained a Buy rating on the stock and has a $10.00 price target.
Barry Oxford’s rating is based on several compelling factors that highlight the strengths of Global Medical REIT. The company has a strategic focus on investing in outpatient facilities, inpatient rehabilitation centers, and medical office buildings, primarily in secondary cities. These investments are leased to high-credit healthcare operators who dominate their respective markets, ensuring stable and reliable income streams. The shares of Global Medical REIT are considered attractively priced compared to other healthcare REITs, with the belief that the company merits at least an average industry multiple.
Furthermore, the company’s financial performance supports this positive outlook. With a high occupancy rate of 96.4% and a rent coverage ratio of 4.5 times, the financial health of their tenants is robust. The company has also demonstrated growth through acquisitions, with a notable increase in revenue by 6.1% year-over-year. Additionally, the company’s balance sheet remains solid, with a manageable debt-to-total capitalization ratio and a substantial borrowing capacity, positioning it well for future growth and stability.