tiprankstipranks

Hold Rating for Primary Health Properties plc: Strategic Growth Amid Sector Challenges

Hold Rating for Primary Health Properties plc: Strategic Growth Amid Sector Challenges

John Cahill, an analyst from Stifel Nicolaus, maintained the Hold rating on Primary Health Properties plc R.E.I.T (PHPResearch 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.

Disclaimer & DisclosureReport an Issue