Deutsche upgrades CareTrust on ‘very strong’ growth potential

Deutsche Bank upgraded CareTrust REIT (CTRE) to Buy from Hold with a price target of $31, up from $27. The company’s liquidity and low leverage position it “very strong” earnings growth over the next few years, the analyst tells investors in a research note. CareTrust’s valuation multiple is being hurt by headline risk from tenant Pacs Group, but Deutsche Bank’s analysis suggests the company’s actual earnings risk “may be lower than investors fear,” the analyst tells investors in a research note. The firm sees accretive acquisitions as a key catalyst going forward for CareTrust REIT shares.