In a report released today, Juan C. Sanabria from BMO Capital maintained a Hold rating on CareTrust REIT, with a price target of $39.00.
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Juan C. Sanabria has given his Hold rating due to a combination of factors impacting CareTrust REIT’s performance. The company missed its third-quarter expectations, with guidance being revised downward, which was attributed to the timing of equity raising and increased general and administrative expenses. Despite these challenges, the decision to invest in G&A is seen as a strategic move to support future growth and SHOP plans.
Furthermore, while the deal pipeline remains strong with significant transactions completed year-to-date, the financial results fell short of expectations in terms of normalized FFO and FAD. The reduction in guidance for 2025 reflects these shortfalls and does not yet factor in potential future acquisitions. Additionally, the anticipated increase in shares outstanding following an equity raise adds to the cautious outlook, prompting the Hold rating.