Healthcare Realty Trust downgraded to Hold from Buy at Jefferies

Jefferies downgraded Healthcare Realty Trust (HR) to Hold from Buy with a price target of $17, down from $19. The company is entering 2025 with a leadership change, limited external growth potential, and elevated dividend cut risk, the analyst tells investors in a research note. The firm says Healthcare Realty dismissed its former CEO in November and messaged that it would take 6-9 months to appoint a new, permanent CEO. This comes as the company is unable to grow externally given its high leverage and cost of equity, and with a dividend that may take multiple quarters to cover, contends Jefferies. As such, it sees “a lot of uncertainty.”