UBS initiates Ventas stock with Neutral rating, citing fair valuation

Published 19/09/2025, 08:02
UBS initiates Ventas stock with Neutral rating, citing fair valuation

Investing.com - UBS initiated coverage on Ventas (NYSE:VTR) with a Neutral rating and a $73.00 price target on Friday. The healthcare REIT, with a market capitalization of $31.1 billion, is currently trading near its 52-week high of $71.36. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The investment bank cited Ventas’s strong senior housing operating portfolio (SHOP) same-store net operating income and adjusted funds from operations (AFFO) growth trajectory as already fairly priced into the healthcare REIT’s shares.

UBS noted that while Ventas will continue to benefit from the "unprecedented senior housing backdrop," further upside appears limited by several factors, including its lower operating exposure relative to peers at 48% compared to Welltower’s 59%.

The firm also pointed to Ventas’s more stabilized SHOP showing moderating performance and its stabilized acquisition strategy that restricts upside potential as additional limiting factors.

UBS expects Ventas’s AFFO growth to slightly moderate from 9.5% in 2025 to 8.8% in 2026, noting that the company currently trades at a premium next-twelve-months FFO multiple of 18x compared to its five-year average of 16x.

In other recent news, Ventas, Inc. reported strong financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved earnings per share (EPS) of $0.15, slightly above the forecast of $0.14. Additionally, Ventas’s revenue reached $1.42 billion, exceeding the anticipated $1.37 billion. These results highlight the company’s robust performance in the healthcare and senior living real estate sector. In further developments, Ventas announced a quarterly dividend of $0.48 per common share, with the payout scheduled for October 16, 2025. The dividend will be distributed to shareholders of record as of September 30, 2025. These announcements reflect Ventas’s continued commitment to delivering value to its investors.

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