Michael Goldsmith, an analyst from UBS, has initiated a new Buy rating on CareTrust REIT (CTRE).
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Michael Goldsmith has given his Buy rating due to a combination of factors including positive estimate revisions and strong investment volumes. CareTrust REIT (CTRE) has shown better-than-expected performance in its investment volumes, with significant exposure to skilled nursing facilities and a strategic entry into the senior housing operating portfolio. The company’s recent acquisitions have effectively doubled its total addressable market, positioning it for continued growth.
Additionally, CTRE’s strong rent collection and high EBITDARM coverage indicate robust financial health, surpassing pre-COVID levels and outperforming peers. The favorable supply and demand dynamics in the senior care sector, coupled with CTRE’s strategic investments and high occupancy rates, further reinforce the Buy rating. The valuation reflects a favorable risk/reward profile, with CTRE trading at a premium due to its strong investment spreads and growth potential.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $41.00 price target.