Sabra Health Care cut to Underperform at BofA after ‘puzzling’ Q3 portfolio move

BofA analyst Joshua Dennerlein downgraded Sabra Health Care to Underperform from Neutral with a price target of $13, down from $15, updating his valuation model after the company’s Q3 results. The analyst states that it is "puzzling" why Sabra would transition a portfolio with healthy coverage to new operators and offer a rent cut. Dennerlein adds that the quarter offered little clarity and opened questions regarding the strength of the company’s lease agreements with its tenants.