American Healthcare REIT price target raised to $27 from $16 at KeyBanc

KeyBanc analyst Austin Wurschmidt raised the firm’s price target on American Healthcare REIT to $27 from $16 and keeps an Overweight rating on the shares. The firm notes shares have increased 51.2% since reporting Q2 results vs. 15.6% for the healthcare REITs and 10.8% for the RMZ, and are up 85.5% since pricing its IPO on February 6, 2024. The move follows the company’s 3.3% 2024 Normalized FFO guidance increase, which included a 700 bps increase to 2024 SSNOI growth, and its post-IPO lock-up expiration. KeyBanc views the price performance and multiple re-rating reflect the growth potential within the company’s RIDEA portfolio; management’s execution since coming public; and future accretion from exercising its purchase option for the remaining 24% interest in its largest operator, Trilogy.