In a report released today, Merrill Ross from Boenning & Scattergood maintained a Buy rating on Global Medical REIT (GMRE), with a price target of $10.50. The company’s shares closed yesterday at $9.30.
Ross observed:
“We had previously not included any acquisitions in our estimates as they had no way to fund them. Although we are trimming our 2018 and 2019 FFO estimates, we are raising our NAV estimate based on forward property net operating income. While larger peers trade at a 15% premium to NAV, we apply a slight discount to forward NAV because GMRE’s small size and higher cost of capital puts it at a disadvantage, though we think the company can be nimble in sourcing and closing acquisitions. Our $10.50 price target is a 2% discount to forward NAV of $10.75. The Moderate risk level recognizes that while AFFO covered the dividend in the most recent quarter, funds available after financing tenant improvements did not quite cover the distribution, possibly putting the dividend at risk (see Exhibit 1, below).”
According to TipRanks.com, Ross is a 1-star analyst with an average return of -1.6% and a 46.2% success rate. Ross covers the Financial sector, focusing on stocks such as Preferred Apartment Communities, NexPoint Residential Trust Inc, and Bluerock Residential Growth.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Global Medical REIT with a $10.63 average price target.
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Based on Global Medical REIT’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $1.74 million. In comparison, last year the company had a net profit of $640K.
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Global Medical REIT, Inc. operates as a development stage company that intends to develop and manage a portfolio of healthcare real estate assets and properties. The company was founded on March 18, 2011 and is headquartered in Bethesda, MD.
