Though Friday was one thing of a sleepy information day for Medical Properties Belief (NYSE: MPW), the newest analyst strikes in regards to the inventory motivated traders to plow into it. In consequence, shares of the specialised actual property funding belief (REIT) surged in the course of the buying and selling session. They closed the day nearly 14% greater in value, completely trouncing the 0.5% improve of the S&P 500 index.
Whole lot evokes constructive reactions
Two skilled Medical Properties Belief-watchers weighed in with new takes on the inventory Friday. Of the 2, the extra weighty got here from Colliers Safety’s David Toti. He up-shifted his advice on the REIT to purchase from the earlier impartial, putting a $6.50 per-share value goal on the inventory.
Toti’s peer Michael Lewis at Truist Securities additionally bought notably extra optimistic about Medical Properties Belief’s future. He cranked his value goal 20% greater, elevating it to $6 per share from $5.
The timing is just not coincidental. Each strikes got here mere days after Medical Properties Belief’s information that it had reached a settlement with its most problematic tenant, the financially strapped Steward Well being Care (which filed for Chapter 11 chapter in Could). Underneath the phrases of the deal, the REIT will regain management over the 23 properties rented by Steward; it has already lined up new tenants for 15 of them.
A essential exit
The Steward association is a milestone for Medical Properties Belief that helps take away a millstone. The state of affairs with the failing tenant was a lot of the explanation for the pronounced slide within the REIT’s recognition, and the satisfying decision has been — and can seemingly proceed to be — an incentive for traders to re-evaluate their very own takes on the corporate.
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Eric Volkman has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Colliers Worldwide Group and Truist Monetary. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
