Juan C. Sanabria, an analyst from BMO Capital, maintained the Buy rating on Omega Healthcare (OHI – Research Report). The associated price target was lowered to $42.00.
Juan C. Sanabria’s rating is based on a combination of factors that highlight Omega Healthcare’s financial performance and strategic developments. The company’s first-quarter 2025 Funds Available for Distribution (FAD) met expectations, with investments ramping up significantly in April. Additionally, the 2025 guidance was increased by 1.4% above market expectations due to these investments, indicating a positive outlook.
Furthermore, Omega Healthcare’s adjusted Funds From Operations (FFO) for the first quarter of 2025 surpassed market predictions, showcasing a strong year-over-year growth. Despite some concerns regarding Genesis, which accounts for 4.9% of the company’s Net Operating Income (NOI), the situation was managed effectively without a write-down, maintaining a solid EBITDAR coverage. These factors contribute to a favorable view of Omega Healthcare’s stock, justifying the Buy rating.
According to TipRanks, C. Sanabria is a 2-star analyst with an average return of 0.0% and a 45.08% success rate. C. Sanabria covers the Real Estate sector, focusing on stocks such as Healthpeak Properties, Public Storage, and CareTrust REIT.