Welltower raised to Strong Buy at RayJay on potential earnings upside (NYSE:WELL)
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Raymond James upgraded Welltower (NYSE:WELL) shares to Strong Buy from Outperform on Thursday as the REIT’s earnings are set to be bolstered by a combination of its senior housing operating portfolio net operating income growth trajectory and its “unparalleled” cost of capital and access to capital.
The ladder dynamic allows “management to capitalize on unprecedented accretive external growth opportunities, exemplified by Monday’s $1.5B equity offering with proceeds earmarked for 2B of newly disclosed, granular acquisition activity within the seniors housing and skilled nursing facility (SNF) sectors,” the firm wrote in a note.
In addition to strengthening earnings, both dynamics are expected to benefit net asset value and dividend growth.
After publishing better-than-expected Q3 normalized FFO per share last week, thanks to strong growth in its senior housing portfolio, Welltower (WELL) raised its full-year guidance.
Raymond James’ Strong Buy rating disagrees with the SA Quant system rating of Hold and aligns with the average sell-side analyst rating of Buy.
WELL edged down 0.4% in Thursday morning trading.
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