Truist Securities raises Sabra Healthcare REIT stock price target to $20

Published 02/09/2025, 20:00
Truist Securities raises Sabra Healthcare REIT stock price target to $20

Investing.com - Truist Securities raised its price target on Sabra Healthcare REIT Inc. (NASDAQ:SBRA) to $20.00 from $18.00 on Tuesday, while maintaining a Hold rating on the stock. The new target approaches the stock’s 52-week high of $20.03, with shares currently trading at $19.15. According to InvestingPro data, SBRA offers a substantial 6.28% dividend yield and has maintained dividend payments for 15 consecutive years.

The firm cited slightly increased normalized funds from operations (NFFO) estimates for the healthcare real estate investment trust in its analysis.

Truist noted that Sabra has demonstrated strong balance sheet performance, with the stock gaining approximately 10% year-to-date, outperforming the Vanguard Real Estate ETF (VNQ), which has risen about 4% during the same period.

Despite these positive factors, Truist pointed out that Sabra is not as low-leveraged as several of its peers in the healthcare REIT sector.

The firm also observed that while Sabra trades near the high end of its 10-year stock valuation range, its current cost of equity leaves relatively little room for immediate earnings accretion on acquisitions in what Truist describes as an attractive but competitive healthcare REIT sector.

In other recent news, Sabra Healthcare REIT Inc . reported its second-quarter 2025 earnings, which surpassed market expectations. The company achieved an earnings per share (EPS) of $0.27, significantly higher than the forecasted $0.18, representing a 50% surprise. Revenue also exceeded predictions, reaching $189.15 million compared to the anticipated $181.53 million, marking a 4.2% surprise. Following these results, Citizens JMP raised its price target for Sabra Healthcare REIT to $22.00 from $20.00, while maintaining a Market Outperform rating. This decision was influenced by Sabra’s Core FFO of $0.38 per share, which exceeded both Citizens and consensus expectations. The outperformance was largely attributed to higher net lease income related to percentage rents. These developments highlight the company’s strong financial performance in the recent quarter.

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