Wells Fargo downgrades Ventas to Equal Weight on less positive 2024 outlook

As previously reported, Wells Fargo analyst Connor Siversky downgraded Ventas to Equal Weight from Overweight with a price target of $46, down from $52, on a less positive 2024 outlook and cost of capital disadvantage. The firm continues to view Ventas’ SHOP prospects positively, and acknowledges the potential for short-term upside driven by mean reversion of valuation multiples. However, Wells does not believe SHOP performance alone will cover for relatively high leverage and limited investment opportunities through the end of 2024.