As previously reported, Wells Fargo downgraded Omega Healthcare (OHI) to Equal Weight from Overweight with a price target of $39, down from $41. While the market certainly has already priced in some of the risk, the firm is moving to the sidelines as its base case of cuts includes reducing provider taxes. Wells estimates this will push Omega’s EBITDAR coverage down to 1.41-turns by 2026, which would likely introduce greater credit risk. The firm expects to be nimble here as there are multiple catalysts in this process over the next 180 days that can affect its thesis.
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Read More on OHI:
- Omega Healthcare downgraded to Equal Weight from Overweight at Wells Fargo
- Omega Healthcare price target raised to $39 from $38 at Truist
- Omega Healthcare price target lowered to $41 from $43 at Wells Fargo
- Omega Healthcare price target lowered to $39 from $43 at RBC Capital
- Omega Healthcare Reports Strong 2024 Financial Results
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