Analyst Explains Why They Upgraded Their Rating on HCP Inc (HCP)


In a report released today, Joseph France from Cantor Fitzgerald upgraded HCP Inc (NYSE: HCP) to Buy, with a price target of $29. The company’s shares opened today at $25.68.

France said:

“We are upgrading our rating to and raising our 12-month price target to $29 from $28. After years of restructuring and strengthening its financials, we believe that HCP is well positioned in each of its major businesses, particularly life science and medical office. We have been cautious on senior housing (SHO), but demographics and less new construction could help occupancy in 2019-20, and HCP’s business is mostly (about two-thirds) triple-net, which lacks the upside leverage of SHOP, but mitigates the risk that occupancy remains weak. Our new price target reflect a slightly higher long-term growth rate assumption for the company.”

According to TipRanks.com, France is a 5-star analyst with an average return of 10.2% and a 59.0% success rate. France covers the Services sector, focusing on stocks such as Cross Country Healthcare, Five Star Quality Care, and Addus Homecare Corp.

Currently, the analyst consensus on HCP Inc is a Moderate Buy with an average price target of $27.67.

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HCP Inc’s market cap is currently $12.01B and has a P/E ratio of 213. The company has a Price to Book ratio of 2.33.

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HCP, Inc. is a real estate investment trust which invests primarily in real estate serving the healthcare industry in the United States. It acquires, develops, leases, sells, and manages healthcare real estate and provides mortgage and other financing to healthcare providers.

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