John Cahill, an analyst from Stifel Nicolaus, maintained the Hold rating on Primary Health Properties plc R.E.I.T (PHP – Research Report). The associated price target is p92.00.
John Cahill has given his Hold rating due to a combination of factors influencing Primary Health Properties plc R.E.I.T. The company’s earnings have shown growth, with a 3% increase in EPS, supporting a fully covered dividend, marking the 29th consecutive year of dividend growth. Despite the sector’s overall devaluation, PHP’s shares have performed relatively well, trading at a 15% discount to NTA compared to the UK REIT average of over 25%.
However, the share prices of long-income focused REITs, including PHP, are inversely correlated with sterling swap rates, which is expected to persist until the forthcoming OBR report. The dividend yield of 7.5%, backed by high-quality tenant covenants, supports the current relative premium to the sector. Additionally, PHP’s recent acquisition of a health clinic in Cork, Ireland, at a 7.1% earnings yield, reflects strategic growth, though the company’s LTV ratio of 48.1% remains higher than the UK REIT average. These factors collectively support the Hold rating.
According to TipRanks, Cahill is ranked #2132 out of 9390 analysts.