Medical Properties downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo analyst Connor Siversky downgraded Medical Properties Trust to Underweight from Equal Weight with a price target of $4, down from $7. The company has over $5B in debt expiring through the end of 2026, implying a need to engage in large-scale asset sales as a source of funds, the analyst tells investors in a research note. Given the lack of activity in the transaction market for hospitals, the firm believes yields on sales could breach 10%, and models a reduction in Medical Properties Trust’s funds from operations estimates. In addition, Steward “remains a major concern, Wells contends.