Medical Properties Trust price target lowered to $4.50 at RBC Capital

Investing.com - RBC Capital has reduced its price target on Medical (TASE:BLWV) Properties Trust (NYSE:MPW) to $4.50 from $5.00 while maintaining a Sector Perform rating with a Speculative Risk qualifier. According to InvestingPro data, the stock currently trades at $4.35, with analyst targets ranging from $3.50 to $7.00, reflecting the market’s mixed sentiment on the healthcare REIT.

The price target adjustment primarily reflects the recent joint venture debt refinancing and higher operating expense leakage due to vacant assets, according to RBC Capital.

The investment firm noted that Medical Properties Trust stock will likely remain volatile in the coming period due to several ongoing uncertainties in the business.

These uncertainties include several tenant situations, the company’s ability to monetize non-revenue generating assets, and elevated leverage metrics.

Despite lowering the price target, RBC Capital maintained its Sector Perform rating on the healthcare real estate investment trust, indicating a neutral stance on the stock’s performance relative to the sector.

In other recent news, Medical Properties Trust Inc . reported a GAAP net loss of $0.20 per share for the first quarter of 2025, significantly missing analysts’ expectations of a $0.01 earnings per share gain. The company’s revenue also fell short, coming in at $223.8 million compared to the forecasted $229.61 million. Despite these setbacks, Medical Properties Trust took steps to strengthen its financial position by issuing $2.5 billion in secured bonds. The company has projected operational improvements, expecting cash rents to rise significantly by late 2025. Analysts from firms like RBC Capital Markets have been closely monitoring the company’s strategic moves, though no upgrades or downgrades were specifically noted in the recent reports. The company also highlighted its plans to increase cash rent from former Steward facilities, aiming for over $1 billion in annualized cash rent. Meanwhile, Medical Properties Trust continues to explore asset repositioning opportunities to enhance revenue streams. These developments reflect the company’s ongoing efforts to navigate financial challenges and optimize its portfolio.

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