On Wednesday, Citi updated its price target for Healthpeak Properties Inc (NYSE:DOC), increasing it to $22 from the previous $20, while the firm retained a Neutral stance on the stock. This adjustment follows the company's second-quarter earnings report and takes into account revised operational, financing, and transactional assumptions.
The firm's analysis led to the maintenance of its 2024 core Funds From Operations (FFOps) per share estimate at $1.79. However, the estimate for 2025's core FFOps per share has been slightly reduced to $1.84, down from $1.85. The revision in the price target reflects these updated projections.
In a statement released, Citi highlighted the reasons behind the new price target, stating, "Following 2Q earnings, we are updating our DOC model for updated operating, financing, and transaction assumptions." The firm's decision to adjust its price target is directly linked to the recent quarterly financial outcomes and future expectations for Healthpeak Properties.
Healthpeak Properties, a real estate investment trust, focuses on properties serving the healthcare industry, including sectors such as senior housing, life science, and medical offices. The updated estimates and price target from Citi suggest a cautious but slightly more optimistic outlook for the company's financial performance.
Investors and market watchers will note the new $22 price target as a point of reference for Healthpeak Properties' stock performance in the market. The maintained Neutral rating indicates that while expectations have improved, Citi remains reserved in its overall assessment of the stock’s growth potential.
In other recent news, Healthpeak Properties has witnessed significant developments, including robust earnings results, strategic mergers, and analyst upgrades. The company's earnings report was strong, leading to RBC Capital and Evercore ISI increasing their price targets for Healthpeak Properties to $25 and $24 respectively. Baird also raised its price target to $24, citing the company's operational management strength, lab improvements, and merger synergies.
Healthpeak's merger with Physicians Realty (NYSE:DOC_OLD) brought additional scale and tenant relationships, further strengthening its position. The company also fully acquired King Street Properties' minority stake in their joint venture, expanding Healthpeak's greater Boston portfolio to a total of 2.7 million square feet.
In addition, Healthpeak has raised its 2024 earnings guidance following a strong first quarter, fueled by robust same-store performance, the successful integration of Physicians Realty, and strategic stock buybacks. The company plans to internalize an additional four million square feet by year-end, targeting more than 70% of its total footprint for internalization in 2025 and '26.
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