Community Healthcare downgraded to Neutral from Outperform at Baird

Baird downgraded Community Healthcare Trust to Neutral from Outperform with a price target of $33, down from $43. Community Healthcare is having no issues sourcing acquisitions, but softer capital markets warrant more cautious view of external growth stories in the real estate investment trust industry, the analyst tells investors in a research note. The firm reduced expectations for accretion from external growth due to the company’s rising cost of capital. The company’s number three tenant is working through a bankruptcy, but management noted the balance of the tenants are performing as expected, adds Baird.