Omega Healthcare resumed with a Buy at Berenberg

Berenberg analyst Tao Qiu resumed coverage of Omega Healthcare with a Buy rating and $35 price target. The firm believes that Omega, the largest public owner of skilled nursing facilities, or SNFs, is “at a turning point” as the COVID-19 pandemic abates. The firm sees SNF operating fundamentals recovering and believes Omega has the capital an pipeline to increase acquisitions at an accretive spread over cost of capital, the analyst tells investors. The firm adds that it thinks the risk of a dividend cut is “low.”