CareTrust REIT upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded CareTrust REIT to Overweight from Equal Weight with a price target of $34, up from $28, following analyst coverage transfer. Following meeting with CareTrust, the firm was encouraged by management’s confidence in its ability to replenish its pipeline. Wells also sees upside to earnings as CareTrusthas moved all problem tenants to held-for-sale that present no earnings risk for 2024 but will provide upside to 2025 estimates if the assets are transitioned. Even without cooperation of the equity market, the firm’s high leverage stress test on acquisitions keeps it constructive on CareTrust’s ability to grow in all environments.