Healthpeak Properties stock rating upgraded by Raymond James on valuation

Investing.com - Raymond James upgraded Healthpeak Properties Inc (NYSE:DOC), a $12.8 billion healthcare REIT with a GOOD financial health score according to InvestingPro, from Market Perform to Outperform on Monday, setting a price target of $20.00.

The upgrade comes after Healthpeak shares underperformed peers by approximately 15% over the past three months, and lagged the healthcare REIT average by more than 700 basis points during the same period.

Raymond James attributed the stock’s recent weakness to a significant occupancy decline in Healthpeak’s life science segment during the second quarter of 2025.

The firm expressed limited concern about further downside in life science fundamentals, noting that while it models occupancy to trend down through 2027, this projection could prove conservative if biotech capital markets improve and leasing demand increases.

Raymond James also highlighted Healthpeak’s attractive valuation and well-covered 6.7% dividend yield, while identifying the company as one of the largest underweight positions among REIT-dedicated investors.

In other recent news, Healthpeak Properties, Inc. has priced a $500 million public offering of 4.750% senior unsecured notes due in 2033. The offering is expected to generate approximately $492.8 million in net proceeds after deducting underwriting discounts but before other fees and expenses. Additionally, Healthpeak Properties has updated its federal income tax considerations in a recent SEC filing, superseding previous information in its prospectus. Analyst activity has been notable, with Mizuho maintaining an Outperform rating on Healthpeak Properties while slightly lowering its funds from operations estimates. In contrast, Scotiabank downgraded the company from Sector Outperform to Sector Perform due to weak second-quarter leasing performance and laboratory credit risk concerns. KeyBanc has reiterated its Sector Weight rating as lab occupancy issues continue to impact the company’s performance. These developments reflect the ongoing challenges and strategic decisions faced by Healthpeak Properties.

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