CareTrust REIT (CTRE – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Joshua Dennerlein from Bank of America Securities maintained a Buy rating on the stock and has a $33.00 price target.
Joshua Dennerlein has given his Buy rating due to a combination of factors including CareTrust REIT’s strategic acquisition of Care REIT, which marks its expansion into the UK market. This move diversifies its portfolio and reduces its reliance on US Medicaid, addressing market concerns over potential Medicaid cuts. The acquisition is expected to enhance earnings growth, with projected significant increases in funds available for distribution and funds from operations by 2025.
Additionally, CareTrust REIT’s low leverage provides it with ample capacity for further external growth opportunities, setting it apart from its peers. The high-quality portfolio, consisting of triple net lease care homes, is expected to bolster future earnings. The diversification into the UK market further reduces exposure to US skilled nursing facilities, which is seen as a positive development given the current market conditions.
According to TipRanks, Dennerlein is a 3-star analyst with an average return of 0.9% and a 45.45% success rate. Dennerlein covers the Real Estate sector, focusing on stocks such as Welltower, Mid-America Apartment, and Omega Healthcare.
In another report released yesterday, Raymond James also reiterated a Buy rating on the stock with a $35.00 price target.