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Investing.com - Truist Securities upgraded National Health Investors (NYSE:NHI) from Hold to Buy while maintaining its price target of $77.00, representing a potential 16% total return. The healthcare REIT, currently trading at $69.48 with a market cap of $3.24 billion, boasts a notable 5.18% dividend yield and has maintained dividend payments for 35 consecutive years. According to InvestingPro analysis, NHI currently appears overvalued relative to its Fair Value.
The upgrade comes as Truist highlighted NHI as one of the lowest-leveraged REITs in its coverage universe, while still maintaining among the highest forecasted three- and five-year earnings growth rates and PEG ratios.
Truist expects continued improvement in skilled nursing rent coverage and senior housing operating portfolio fundamentals for the healthcare REIT.
The firm anticipates material earnings accretion when NHI resets its master lease rent with NHC to market rate upon its 2026 expiration.
Additional accretion is expected from NHI utilizing its "attractive cost of capital to acquire high quality properties at relatively high yields," according to Truist’s analysis.
In other recent news, National Health Investors (NHI) reported its first-quarter 2025 earnings, showing an earnings per share (EPS) of $0.74, which slightly exceeded the forecast of $0.73. However, the company experienced a revenue shortfall, with actual revenue at $68.87 million compared to the expected $71.68 million. Despite this, NHI raised its full-year normalized Funds from Operations (FFO) guidance midpoint to $4.71 per share. Additionally, the company announced plans for $155 million in new investments, signaling confidence in its financial strategy. In corporate governance news, NHI stockholders elected four director nominees during the 2025 Annual Meeting, while proxy advisory firm Glass Lewis (JO:LEWJ) endorsed two independent nominees proposed by Land & Buildings Investment Management for the board. Glass Lewis highlighted concerns over the current board’s objectivity and suggested that new perspectives could enhance strategic oversight. These developments come amid a backdrop of strategic investments and partnerships aimed at driving future growth for NHI.
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