Street Calls of the Week
Investing.com - Citizens raised its price target on American Healthcare REIT, Inc (NYSE:AHR) to $50.00 from $45.00 on Friday, while maintaining a Market Outperform rating ahead of the company’s third-quarter 2025 results. The stock, currently trading at $42.47, has delivered an impressive 74.5% return over the past year and is approaching its 52-week high of $43.52.
The research firm cited an "extreme supply/demand imbalance" in the senior housing market and strong performance from AHR’s Trilogy operations as key factors supporting the higher valuation.
Citizens noted that AHR benefits from an attractive cost of equity capital of approximately 3.5%, enabling the company to deploy capital accretively. Management has guided to $350 million in investment activity this year, focusing on newer and larger SHOP (senior housing operating portfolio) assets.
Despite these positive factors, Citizens expects AHR to maintain its current guidance for the year, considering the company had already raised guidance following its previous two quarterly reports.
The new price target represents a multiple of 30 times 2026 estimated FAD (funds available for distribution), up from the previous target based on 27 times 2026 estimated FAD. According to InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, suggesting investors should carefully consider their entry points.
In other recent news, American Healthcare REIT has caught the attention of several financial firms with their latest updates. Truist Securities increased their price target for the company to $44.00 from $38.00, citing strong second-quarter results and a positive earnings outlook. KeyBanc also raised its price target to $43.00 from $40.00, maintaining an Overweight rating due to higher estimates for the healthcare real estate investment trust. Meanwhile, UBS initiated coverage with a Buy rating and set a price target of $51.00, expecting robust growth in adjusted funds from operations over the next decade. Truist Securities further raised their price target to $46.00 following discussions with the company’s management, which included insights from the CFO and VP of Investor Relations. These developments reflect a generally optimistic view among analysts regarding American Healthcare REIT’s future performance.
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