Michael Goldsmith, an analyst from UBS, has initiated a new Buy rating on American Healthcare REIT, Inc. (AHR).
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Michael Goldsmith has given his Buy rating due to a combination of factors that highlight the potential for robust growth in American Healthcare REIT, Inc. (AHR). The company’s anticipated strong growth in Adjusted Funds From Operations (AFFO) over the next decade is a key driver, warranting a premium valuation. AHR’s strategy to increase its Senior Housing Operating Portfolio (SHOP) exposure through acquisitions and organic growth is expected to outperform consensus estimates for 2026 and 2027. The company’s wholly-owned Trilogy division, which constitutes a significant portion of its net operating income, is recognized for its superior performance metrics compared to peers, further supporting growth projections.
Additionally, the demographic trends, such as the growing 80+ age cohort and decreasing familial caregiver ratio, are expected to drive demand for senior housing and skilled nursing facilities. The limited growth in senior housing inventory and opportunities for industry consolidation also present favorable conditions for AHR. Despite trading at a premium, the company’s cost of equity and acquisition cap rates provide a competitive advantage, supporting its external growth strategy. These factors collectively underpin Goldsmith’s positive outlook and justify the Buy rating with a price target of $51.
In another report released on September 3, Morgan Stanley also maintained a Buy rating on the stock with a $48.00 price target.
AHR’s price has also changed dramatically for the past six months – from $29.400 to $42.640, which is a 45.03% increase.