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On Wednesday, Jefferies analysts adjusted their stance on Healthcare Realty Trust (NYSE:HR), downgrading the stock from Buy to Hold and reducing the price target to $17.00 from the previous $19.00.
The revision follows a period of executive transition and financial challenges for the company.
"It is time for us to move to the sidelines as we are entering 2025 with a leadership change, limited external growth potential, and elevated dividend cut risk," the analysts said.
Healthcare Realty Trust had dismissed its CEO in November 2024 and indicated that the search for a new permanent CEO could take between six and nine months.
The analysts cited the company's high leverage and the cost of equity as obstacles to external growth. Additionally, they mentioned that the company's dividend might require multiple quarters to cover, further contributing to the decision to downgrade the stock rating to Hold.
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