Healthpeak downgraded at Scotiabank on Life Science segment’s tougher outlook

As previously reported, Scotiabank downgraded Healthpeak to Sector Perform from Outperform with a price target of $24, down from $27. Following a deep dive into the biotech/pharma companies that are tenants in the company’s Life Science segment, the firm now expects a tougher operating environment in 2023-2024 for the Life Science segment that makes up 50% of NOI, the analyst tells investors. The firm sees a scenario where early-stage biotech startup formation is slowing at the same time that sublease space is rising across South San Francisco, San Diego and Boston, Scotiabank warns.