Morgan Stanley raises Ventas target to $57, keeps Equalweight rating

Published 19/08/2024, 18:12
Morgan Stanley raises Ventas target to $57, keeps Equalweight rating

On Monday, Morgan Stanley adjusted its outlook on Ventas (NYSE:VTR) a healthcare real estate investment trust (REIT), by increasing the stock's price target to $57.00 from the previous target of $52.50. The firm maintained its Equalweight rating on the stock, indicating a neutral stance on its investment potential relative to the market or its peers.

Despite the perceived complexity and leverage concerns, Ventas shares are seen as attractive based on projected same-store net operating income (SSNOI) growth in 2024 and an anticipated organic reduction in leverage. However, the integration of the SNR acquisition and higher growth rates in other healthcare REITs covered by the firm have led to a continued Equalweight rating.

The analyst highlighted that the discounted cash flow (DCF) analysis suggests there is potential for an upgrade to an Overweight rating as confidence in the company's recovery strengthens.

This implies that there might be a more bullish view on the stock if Ventas demonstrates progress in its business performance and financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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