After B.Riley FBR and D.A. Davidson gave Global Medical REIT (NYSE: GMRE) a Buy rating last month, the company received another Buy, this time from Boenning & Scattergood. Analyst Merrill Ross maintained a Buy rating on Global Medical REIT today and set a price target of $11. The company’s shares closed yesterday at $9.64.
Ross said:
“We are raising our 2019 FFO estimate slightly, noting that the timing of acquisitions will have an impact on annual results that is hard to predict, so we aimed to be conservative. We are raising our NAV from $10.15 to $10.30, based on stabilized forward property net operating income adjusted for acquisition activity. While larger peers trade at a 15% premium to NAV, we think GMRE will trade in-line with 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. Basically, GMRE buys assets that are under the radar because of their small size or are sourced through relationships and not broadly marketed. Our $11.00 price target is a 7% premium to forward NAV, less than the premium awarded to the peer group.”
According to TipRanks.com, Ross is a 1-star analyst with an average return of -0.2% and a 53.7% success rate. Ross covers the Financial sector, focusing on stocks such as Essential Properties Realty Trust Inc, Pennsylvania Real Estate Investment, and Monmouth Real Estate Investment.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Global Medical REIT with a $11.33 average price target, implying a 17.5% upside from current levels. In a report issued on March 8, B.Riley FBR also maintained a Buy rating on the stock with a $11 price target.
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Global Medical REIT’s market cap is currently $250.1M and has a P/E ratio of 28.47. The company has a Price to Book ratio of 1.29.
Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is negative on the stock.
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Global Medical REIT, Inc. engages in the acquisition of purpose-built healthcare facilities and leasing of those properties to strong healthcare systems and physician groups. The company was founded on March 18, 2011 and is headquartered in Bethesda, MD.
