Welltower upgraded to Buy on occupancy recovery at Citi

Citi analyst Nicholas Joseph upgraded Welltower to Buy from Neutral with a price target of $81, up from $70. The analyst remains constructive on senior housing and believes Welltower should continue to benefit from an occupancy recovery and pricing power, which could drive sales growth. In addition, expense pressures, particularly labor, have shown signs of moderation, which should help improve the company’s margins, adds the analyst. It sees continued opportunity for growth of Welltower’s operating platform due to last year’s private letter ruling.