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Investing.com - Truist Securities raised its price target on American Healthcare REIT, Inc (NYSE:AHR) to $44.00 from $38.00 on Friday, while maintaining a Buy rating following the company’s strong second-quarter results and increased earnings guidance. The stock, currently trading near $40.19, has delivered an impressive 123.45% return over the past year and is approaching its 52-week high of $41.50, according to InvestingPro data.
The firm cited AHR’s favorable positioning relative to industry trends, noting that high demographic-driven demand is expected to outpace new supply in the healthcare real estate sector. Truist indicated that management’s comments during the second-quarter conference call suggest the firm’s occupancy projections may still be conservative. This optimism is supported by AHR’s solid 10.05% revenue growth and healthy current ratio of 1.61, as reported by InvestingPro.
AHR’s pipeline of investment opportunities appears large and attractive according to the research note, particularly given the company’s cost of capital. The REIT’s strategy of issuing new equity to fund acquisitions is supporting what Truist describes as the strongest projected earnings growth in its coverage universe.
The firm highlighted AHR’s captive pipeline of investment opportunities generated by further building out and investing in its existing Trilogy campuses. Truist also noted that the company’s financial leverage is among the lowest in its coverage universe.
The new $44 price target implies multiple contraction but still represents an 11.5% total return, with Truist calculating that AHR has the second-best three-year normalized FFO PEG ratio in its six-company healthcare REIT coverage universe and the third-best five-year ratio.
In other recent news, American Healthcare REIT has reported its financial results for the second quarter of 2025, demonstrating a robust performance with a 27% increase in normalized funds from operations per share. The company also raised its full-year 2025 guidance for normalized funds from operations, reflecting a positive outlook. RBC Capital raised its price target for American Healthcare REIT to $45 from $39, maintaining an Outperform rating, following what it described as "solid results" in the company’s earnings report. JMP Securities also increased its price target to $45 from $40, citing the company’s second-quarter results, which included Core FFO of $0.42 per share that surpassed both JMP’s expectation of $0.39 and the consensus estimate of $0.40 per share. This earnings beat was attributed to higher net operating income from American Healthcare REIT’s RIDEA assets. These developments indicate a favorable reception from analysts, with both RBC Capital and JMP Securities maintaining positive ratings on the stock.
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