CareTrust REIT initiated with an Equal Weight at Wells Fargo

Wells Fargo initiated coverage of CareTrust REIT with an Equal Weight rating and $21 price target. While the firm views CareTrust’s "strong" strong portfolio rent coverage and tenant composition favorably, its view is tempered by execution risks related to restructuring efforts, the analyst tells investors in a research note. Wells Fargo expects CareTrust to return to AFFO growth in 2024, and notes six assets identified for transition that have yet to commence rent payments.