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Citi maintained its Neutral rating on American Healthcare REIT , Inc (NYSE:AHR) on Monday while raising its price target to $37.00 from $30.00. The stock, currently trading at $35.40, sits near its 52-week high of $36.33 and has delivered an impressive 151% return over the past year, according to InvestingPro data.
The research firm increased its 2025 funds from operations (FFO) estimate for the healthcare real estate investment trust from $1.58 to $1.63 per share. Citi also revised its 2026 FFO projection upward from $1.79 to $1.83.
The new price target represents approximately 24 times the firm’s 2026 adjusted funds from operations (AFFO) estimate, reflecting a higher multiple applied to the increased forecast.
Citi cited several factors supporting the higher valuation, including continued demand tailwinds in the healthcare property sector and limited new supply entering the market.
The firm also pointed to positive demographic trends as a key driver for American Healthcare REIT’s growth prospects, factors that contributed to the significant 23% increase in the price target despite maintaining the Neutral rating.
In other recent news, American Healthcare REIT reported a strong financial performance for the first quarter of 2025, with revenue reaching $540.6 million. The company saw a 26% increase in normalized funds from operations (NFFO) per share compared to the previous year, despite a negative earnings per share of -$0.04. Analysts at KeyBanc and JMP Securities have both raised their price targets for American Healthcare REIT to $40.00, reflecting confidence in the company’s growth prospects. KeyBanc maintains an Overweight rating, while JMP Securities holds a Market Outperform rating. The company’s Trilogy portfolio was highlighted as a significant contributor to its financial success, particularly during a challenging flu season. American Healthcare REIT has also revised its full-year 2025 guidance upward, with an increase in Core Funds From Operations per share. Additionally, the firm has been active in strategic moves such as issuing equity to reduce debt and acquiring new assets. These developments are seen as positioning the company favorably for future growth.
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