Do Wall Street Analysts Like Ventas Stock?
Valued at a market cap of $31.2 billion, Ventas, Inc. (VTR) is a healthcare real estate investment trust (REIT) based in Chicago, Illinois. The company acquires, owns and leases senior housing, life science, research & innovation (R&I), and healthcare properties.
This healthcare REIT has underperformed the broader market over the past 52 weeks. Ventas has gained 18.9% over this time frame, while the broader S&P 500 Index ($SPX) has soared 21.9%. Nonetheless, on a YTD basis, the stock is up 16.7%, outpacing SPX’s 7.8% return.
Zooming in further, VTR has surged past the Real Estate Select Sector SPDR Fund’s (XLRE) marginal uptick over the past 52 weeks and 2.3% rise on a YTD basis.
On Jul. 30, VTR delivered better-than-expected Q2 results, prompting its share price to rise 1.1% in the following trading session. Primarily due to higher outpatient medical and research portfolio revenues, as well as growth in resident fees and services, the company’s overall revenue grew 18.3% year-over-year to $1.4 billion, surpassing consensus estimates by 3.6%. Furthermore, its adjusted same-store cash NOI advanced 6.6% from the year-ago quarter, reaching $485.3 million. In comparison, its normalized FFO per share of $0.87 improved 8.8% from the same period last year and came in 2.4% above analyst forecasts.
For the current fiscal year, ending in December, analysts expect Ventas’ FFO to grow 7.8% year over year to $3.44 per share. The company’s earnings surprise history is promising. It exceeded or met the consensus estimates in each of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a "Strong Buy” which is based on 14 “Strong Buy,” two "Moderate Buy,” and three “Hold” ratings.
The configuration has remained reasonably stable over the past three months.
On Jul. 31, Scotiabank analyst Nicholas Yulico maintained a "Hold" rating on VTR and set a price target of $72, implying a 4.8% potential upside from the current levels.
The mean price target of $75.50 represents a 9.9% premium from VTR’s current price levels, while the Street-high price target of $84 suggests an upside potential of 22.3%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.