UPDATE: Jefferies Downgrades Ventas to Hold on Valuation and Post-Acute Concerns

Jefferies reduced its rating on Ventas

from Buy to Hold but raised its price target from $65 to $66. Jefferies noted, "Downgrading VTR to Hold on post-acute care concerns and valuation: Healthcare REITs with meaningful exposure to LTACs and IRFs include Medical Property Trust (MPW, Hold, $11.61) and Ventas (VTR, Hold, $64.51). At MPW, it is 43% of the asset base, and at VTR, we estimate it is 5% to 8% of net operating income (NOI). We are downgrading VTR to a Hold rating from our prior Buy rating given this concern. As valuation appears full at 16.4x P/FFO and a 5.3% implied cap rate, we believe the risk/reward with VTR stock is now balanced, rather than being favorable." Ventas closed at $64.51 on Monday.