In a report released today, Joseph France from Cantor Fitzgerald maintained a Hold rating on MedEquities Realty Trust (NYSE: MRT), with a price target of $10. The company’s shares opened today at $9.72, close to its 52-week low of $9.46.
France said:
“We are trimming our 12-month price target to $10 from $12, and lowering our rating to Neutral from Overweight. MRT has a very experienced management team and a growing portfolio of attractive assets, but we are lowering our expectations for the stock on the assumption that resolving some of its operator issues might take longer than we thought. MRT first disclosed several potentially significant operator challenges in 3Q17, and while a number of other REITs have dealt with and resolved similar problems over the past two years, one of the company’s challenged operators is its largest tenant. Transitioning OnPointe, if necessary, could disrupt MRT’s rent stream and slow its growth. We expect an update in 3Q18, but having heard nothing new since the 2Q18 earnings call, we are raising our discount rate to compensate for the uncertainty surrounding the resolution of MRT’s operator issues.”
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.
The word on The Street in general, suggests a Hold analyst consensus rating for MedEquities Realty Trust with a $10.25 average price target.
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The company has a one-year high of $12.05 and a one-year low of $9.46. Currently, MedEquities Realty Trust has an average volume of 150.6K.
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MedEquities Realty Trust, Inc. operates as a real estate investment trust. It focuses on investment in healthcare properties and healthcare related real estate debt investments. It owns, develops, operates, leases, and disposes healthcare properties and portfolios. The company was founded in April 23, 2014 and is headquartered in Nashville, TN.
