UPDATE: Citigroup Raises PT to $16 on Sabra Healthcare REIT

Citigroup raises its price target to $16 on Buy-rated Sabra Healthcare REIT

as it sees continued upside on shares despite already-significant rally. Citigroup says, "SBRA shares are up ~22% YTD and ~66% since October, and despite the significant rally, we continue to see relative value in the stock. SBRA trades at an implied cap rate of ~10%, which represents a sizeable discount to peers at ~8-9% and REITs at 6.2%. Additionally, SBRA's dividend offers the highest yield in the REIT space (~9%), with solid coverage (78% AFFO Payout), and potential upside (assuming the company can hit 2012 guidance). Operator concerns remain, with Sun still representing ~75% of NOI, but Sun has exceeded cost mitigation expectations and has solid coverage of ~1.4x-1.5x (pro forma for asset sales)." SBRA closed at $14.78 a share yesterday.