Analyst Connor Siversky of Wells Fargo maintained a Buy rating on Welltower (WELL – Research Report), retaining the price target of $107.00.
Connor Siversky’s rating is based on Welltower’s robust financial performance and positive future outlook. In the first quarter of 2024, Welltower exceeded expectations with its Core Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) surpassing both Wells Fargo’s and Street’s estimates. The company’s Senior Housing Operating (SHO) portfolio was a significant contributor to this outperformance, experiencing a year-over-year occupancy increase, revenue per occupied room (RevPOR) growth, and notable margin expansion. These strong results are indicative of Welltower’s potential to maintain its rapid growth within the real estate investment trust (REIT) sector, suggesting a promising performance in upcoming trading sessions.
Moreover, Welltower raised its FFO guidance for the year, reflecting stronger growth in its SHO segment’s Net Operating Income (NOI), which is now anticipated to grow at an even higher rate than previously estimated. The company’s strategic dispositions and development plans, alongside increased acquisitions, provide a solid foundation for future growth. Additionally, improvements in the Triple-Net and Outpatient Medical portfolios, with modestly improved coverage ratios and NOI growth, further support the optimistic outlook for Welltower’s financial health and operational efficiency, reinforcing Connor Siversky’s Buy rating.
In another report released yesterday, BMO Capital also reiterated a Buy rating on the stock with a $105.00 price target.
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Welltower (WELL) Company Description:
Ohio-based Welltower, Inc. is a real estate investment trust that invests in senior housing, assisted living and memory care communities, post-acute care facilities, and medical office buildings. It also owns hospitals and other healthcare properties outside of the United States.
