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Citi raises Welltower price target to $120 from $110, keeps Buy rating

EditorBrando Bricchi
Published 06/10/2024, 01:46 PM

On Monday, Welltower Inc. (NYSE:WELL), a real estate investment trust, saw its price target increased by Citi to $120.00, up from the previous target of $110.00. The firm retained its Buy rating on the stock. The adjustment followed Welltower's first-quarter earnings, which led to revisions in the company's financial model.

The updated model now incorporates new operating, financing, and leasing assumptions, reflecting the latest performance and market conditions. According to the firm, these changes have provided a clearer outlook on Welltower's future financial position.

As a result of the model update, the estimated normalized Funds From Operations (FFOps) for the year 2024 have been revised upwards to $4.11 from the earlier forecast of $4.00. For the year 2025, the estimated normalized FFOps have also seen an increase, now expected to reach $4.57, up from the previous estimate of $4.42.

Citi's revised price target and maintained Buy rating indicate a positive outlook on Welltower's financial health and growth prospects. The company's recent earnings report and subsequent financial assessments have contributed to this optimistic stance on the stock's future performance.

Investors and market watchers often look to such adjustments in price targets and ratings by financial institutions as indicators of a stock's potential trajectory. Welltower's increased price target from Citi is likely to be of interest to those following the company's progress and the broader real estate investment market.

In other recent news, Welltower Inc. has announced a revised financial outlook for 2024, with an increase in anticipated normalized funds from operations (FFO) per diluted share. The real estate investment trust now expects the FFO to range between $4.05 and $4.17, a slight rise from the previously projected $4.02 to $4.15. This adjustment reflects Welltower's confidence in its operational performance and strategic initiatives.

In addition, Mizuho Securities has maintained a Buy rating on Welltower stock and has raised its price target to $105, up from the previous $98. This decision follows a recent meeting with Welltower's management team, highlighting key aspects of the company's operations and financial strategies.

On a similar note, RBC Capital Markets has increased its price target on Welltower shares to $101 from the previous $99, following the company's strong first-quarter earnings report for 2024. However, RBC Capital has decided to maintain a Sector Perform rating on Welltower shares.

Lastly, Welltower reported a strong first quarter in 2024, with notable growth in FFO per share and a 25.5% increase in same-store net operating income (NOI). These developments are part of recent updates from Welltower Inc., providing investors with insights into the company's financial health and business growth.

InvestingPro Insights

Following Citi's positive revision of Welltower Inc.'s price target, current data from InvestingPro underscores the company's robust financial standing. Welltower boasts a market capitalization of $62.15 billion, highlighting its significant presence in the market. The real estate investment trust also demonstrates a strong revenue growth, with an increase of 16.14% over the last twelve months as of Q1 2024. This growth is further accentuated by a quarterly revenue jump of 19.16% in Q1 2024, aligning with analysts' expectations of sales growth in the current year.

An InvestingPro Tip worth noting is that Welltower is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.52 during the same period, suggesting potential for investment value based on future earnings. Additionally, Welltower is acknowledged for maintaining dividend payments for an impressive 49 consecutive years, providing investors with a sense of reliability and consistency. The dividend yield stands at 2.35%, with the last dividend ex-date recorded on May 10, 2024.

For investors seeking more in-depth analysis, InvestingPro offers additional tips on Welltower, which can be accessed through their platform. By using the coupon code PRONEWS24, readers can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable insights into the company's performance and investment potential. There are 13 additional InvestingPro Tips available for Welltower, offering a comprehensive outlook on the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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