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Investing.com - Truist Securities lowered its price target on Community Healthcare Trust (NYSE:CHCT) to $19.00 from $23.00 on Wednesday, while maintaining a Buy rating on the healthcare real estate investment trust. The stock currently trades at $14.81, and according to InvestingPro analysis, appears undervalued based on its Fair Value metrics.
The price target reduction reflects a valuation adjustment to align with the stock’s current lower market valuation, though Truist’s target still implies significant upside potential, including a 13.3% dividend yield from payments that management reportedly remains committed to increasing slightly each quarter. InvestingPro data reveals the company has raised its dividend for 10 consecutive years, with a current yield of 12.8% and strong liquidity indicated by a current ratio of 4.25.
Truist slightly raised its 2025 and 2026 normalized funds from operations (FFO) estimates for Community Healthcare Trust, despite the price target reduction.
The firm noted that Community Healthcare Trust’s investment proposition has changed significantly, with its strategy shifting in response to changing capital markets conditions and other factors. Five years ago, the company traded at 23 times FFO and a 93% premium to net asset value (NAV), but those earnings growth expectations did not materialize.
Community Healthcare Trust’s normalized FFO for 2025 appears likely to be slightly lower than in 2020, primarily due to rising interest rates, falling stock price, two tenant issues, and the passing of the company’s founder and original CEO, with the stock now trading at 7 times FFO and a 50% discount to NAV, according to Truist.
In other recent news, Community Healthcare Trust Inc. reported its second-quarter earnings for 2025, revealing a notable shortfall in earnings per share compared to analyst expectations. The company posted an EPS of -$0.50, significantly missing the forecasted $0.09, which represents a surprise of -655.56%. Revenue also slightly missed expectations, coming in at $30.13 million against a forecast of $30.14 million. These results highlight recent developments for the company, which have been closely monitored by investors. There were no reports of mergers or acquisitions involving Community Healthcare Trust in the recent updates. Additionally, there were no analyst upgrades or downgrades mentioned in the recent news. This information provides investors with important insights into the company’s recent financial performance.
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