Omega Healthcare (OHI) has received a new Buy rating, initiated by UBS analyst, Michael Goldsmith.
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Michael Goldsmith has given his Buy rating due to a combination of factors including anticipated positive estimate revisions and robust investment volumes. Omega Healthcare is expected to benefit from strong management and a solid EBITDAR coverage, with the company generating a significant portion of its income from skilled nursing facilities and senior housing. The company’s strategic investments and operator relationships, as evidenced by recent transactions, are projected to drive acquisition volumes significantly above initial consensus estimates.
Additionally, the potential for rent increases and a favorable investment spread further support the positive outlook. The stock’s valuation, trading at a reasonable forward FFO multiple, is seen as attractive compared to its historical average and the broader REIT sector. The demand for senior care is expected to rise, driven by demographic trends, while supply constraints in skilled nursing facilities could enhance operating leverage and rent coverage growth.
In another report released on November 12, Citi also maintained a Buy rating on the stock with a $50.00 price target.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OHI in relation to earlier this year.