National Health Investors stock initiated at Overweight by Cantor Fitzgerald

Investing.com - Cantor Fitzgerald initiated coverage on National Health Investors (NYSE:NHI) with an Overweight rating and a $90.00 price target, representing a potential 12.7% upside from current levels. The stock, currently trading near its 52-week high with a market capitalization of $3.77 billion, has already delivered a strong 19% return year-to-date.

The investment bank’s analysis is based on a 2026 AFFO multiple of 17.8x, which compares to a 19.0x average for the broader REIT industry.

Cantor Fitzgerald highlighted NHI’s strategic focus on acquisitions and conversions aimed at increasing exposure to SHOP/RIDEA properties, noting that the company’s SHOP portfolio grew same-store by nearly 30% in the most recent quarter.

The firm pointed to several positive factors specific to NHI, including an accelerating pace of collection of COVID-era rent deferrals and a recent dividend increase, which was the company’s first in four years.

Cantor Fitzgerald also noted NHI’s ongoing efforts to improve and declassify its Board of Directors, driven by focus on the soon-to-expire lease with National Healthcare Corporation (NHC), suggesting that higher rental revenue, asset sales and transitions could be well-received by investors.

In other recent news, National Health Investors reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.79 compared to the forecasted $0.7526. The company also exceeded revenue forecasts, reporting $70.27 million against the expected $67.73 million. Following these results, Truist Securities raised its price target on National Health Investors to $81 from $77, maintaining a Buy rating on the stock. Additionally, National Health Investors has priced an offering of $350 million in senior notes with a 5.350% interest rate due in 2033. The notes are set to be issued at 98.903% of their par value, with the offering expected to close on September 26, 2025. In another development, the company issued a formal notice of default to NHC/OP, L.P. for failing to comply with certain non-monetary provisions in their Master Lease agreement. This notice follows a previous notification given to the tenant on July 29, regarding non-compliance issues. These recent developments highlight significant financial and operational activities for National Health Investors.

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