Ventas downgraded to Neutral at BofA on Holiday risk

As previously reported, BofA analyst Joshua Dennerlein downgraded Ventas to Neutral from Buy with a price target of $48, down from $54. Ventas reported that occupancy in its Holiday U.S. independent living portfolio lagged expectations, notes the analyst, who points out the Ventas had previously in 2019 struggled with forecasting the performance of assets that were transitioned to ESL, which led to guidance cuts. The firm’s lower rating reflects concerns that “history may repeat itself” and the firm is also increasing capex assumptions for 2024.