RBC upgrades CareTrust REIT on improving competitive landspace

RBC Capital upgraded CareTrust REIT to Outperform from Sector Perform with a price target of $23, up from $19. The analyst says CareTrust is “uniquely positioned” in the current environment to be more aggressive deploying capital accretively. The skilled nursing facility competitive landscape has improved over the past several quarters as the more aggressive private buyers had to take a step back, allowing the real estate investment trusts to again be more competitive, the analyst tells investors in a research note. Additionally, CareTrust can fund investments primarily with equity, driving solid external growth while reducing leverage, contends RBC.