Citi raises Ventas stock price target to $80, maintains buy rating

On Wednesday, Citi analysts updated their valuation model for Ventas (NYSE:VTR), a real estate investment trust, leading to an increase in the price target from $72.00 to $80.00. The firm has sustained its Buy rating on the stock. The reassessment follows Ventas’ fourth-quarter earnings report, which prompted Citi to revise its projections based on new operational, financial, and transactional data. The stock, currently trading near its 52-week high of $71.04, has delivered an impressive 58.16% return over the past year. InvestingPro analysis reveals 10+ additional insights about Ventas’s performance and outlook.

The updated model from Citi now estimates Ventas’ 2025 core funds from operations (FFO) at $3.42, up from the previous $3.35 forecast. Similarly, the 2026 core FFO projection has been adjusted to $3.67 from $3.59. These revised estimates reflect the company’s solid performance, including 9.46% revenue growth in the last twelve months and a market capitalization of $29.23 billion.

The increase in the price target to $80 reflects a valuation multiple of approximately 28 times the estimated adjusted funds from operations (AFFO) for the year 2025. This valuation assigns Ventas a premium compared to its healthcare industry peers, with the stock currently trading at a P/E ratio of 336.09. According to InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value. The new target suggests that Citi analysts see Ventas as continuing to outperform within its sector.

Ventas specializes in an array of healthcare real estate, including senior housing, medical office buildings, and other healthcare-related properties. The company’s financial health and growth prospects are closely watched by investors interested in the healthcare real estate market.

The decision by Citi to raise the price target for Ventas is based on the latest earnings and the firm’s positive outlook on the company’s financial trajectory. The endorsement of a Buy rating indicates Citi’s confidence in Ventas’ ability to generate value for its shareholders.

In other recent news, Ventas Inc . reported its fourth-quarter 2024 results, prompting RBC Capital Markets to raise its price target for the company from $70 to $74 while maintaining an Outperform rating. This adjustment reflects Ventas’s strategic investments in the seniors housing sector, which are expected to enhance long-term growth. Meanwhile, BMO Capital Markets highlighted potential risks from changes in Federal Medical (TASE:BLWV) Assistance Percentages funding but noted Ventas as one of the least at risk among REITs with Skilled Nursing Facilities exposure. Ventas is also planning to divest a portion of its SNF exposure in Pennsylvania, which could mitigate some of these risks.

Baird upgraded Ventas from Neutral to Outperform, despite a slight reduction in the price target to $65, citing improved leverage and capital access. Ventas’s strategic moves, including the reduction of debt and addressing challenges in its triple-net lease portfolio, contributed to this positive outlook. Additionally, BMO Capital Markets maintained an Outperform rating for Ventas with a $72 price target, following a strategic deal with Brookdale Senior Living (NYSE:BKD) Inc. that reduces Ventas’s exposure to Brookdale. This deal is expected to lower transition risks and diversify income sources.

Baird also slightly raised Ventas’s price target to $66, maintaining a Neutral rating, as the company plans to convert 44 assets to its Senior Housing (NASDAQ:DHC) Operating Portfolio starting in September 2025. This conversion is anticipated to boost Net Operating Income from 2025 onwards, despite some temporary complexity in financial reporting. These recent developments highlight Ventas’s strategic maneuvers and the confidence analysts have in its growth prospects.

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