Wedbush upgrades Welltower to Outperform, raises price target to $167

As previously reported, Wedbush upgraded Welltower (WELL) to Outperform from Neutral with a price target of $167, up from $145. The firm notes that the stock carries a valuation that is “not for the faint of heart,” with an NAV premium that looks like a typo, but says this is a momentum call alongside already Outperform-rated Ventas (VTR). For a company that has shown to be ahead of the curve operationally, superimposed upon its capital-raising advantages, Wedbush believes its long-term growth profile is probably 10%-plus. When comparing this to the high single-digits for Ventas and mid-single-digits for Healthpeak Properties (DOC) in the context of a PEG ratio analysis, all three land in a very similar range by the firm’s calculation.