Categories: Business

BofA upgrades Medical Properties to Purchase, cuts Omega Healthcare, Sabra (NASDAQ:SBRA)

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Arkadiusz Warguła/iStock through Getty Photos

Financial institution of America analyst Joshua Dennerlein has made ranking modifications for 3 healthcare REITs on Monday to mirror up to date risk-reward profiles for the yr forward. That features upgrading Medical Properties Belief (NYSE:MPW) to Purchase from Impartial, downgrading Omega Healthcare Buyers (NYSE:OHI) to Impartial from Purchase, and slicing Sabra Well being Care (NASDAQ:SBRA) to Underperform from Impartial.

For Medical Properties (MPW), specifically, Dennerlein identified some forward-looking optimistic catalysts, together with “(1) we count on the Steward ABL to be completely prolonged in December, (2) administration has alluded to a multi-party transaction involving Prospect,” he wrote in a notice.

As well as, “(3) tenants ought to begin to see bettering fundamentals from payor price hikes, bettering labor markets and slowing inflation, and (4) a pivot to a extra dovish Fed is a optimistic for this excessive yielding REIT.”

On the identical time, although, Omega (OHI) and Sabra (SBRA), each of which put money into expert nursing services, could possibly be seen at an obstacle given the possible termination of the Federal public well being emergency on January 11, 2023, the notice learn.

Searching for Alpha contributor Steven Fiorillo views Omega (OHI) as a Purchase, calling it an “8% yielding dividend machine.” Fellow SA contributor Jussi Askola justifies Medical Properties with a Sturdy Purchase ranking following the hospital REIT’s third-quarter outcomes.

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