UPDATE: Stifel Nicolaus Raises PT on Sabra Health Care REIT Post Preferred Offering
Stifel Nicolaus maintained Sabra Health Care REIT (NASDAQ: SBRA) with a Buy rating and raised the price target from $29.00 to $30.00.
Stifel Nicolaus analyst Robert Mains wrote, "Yesterday, Sabra priced 5 million shares of 7.125% cumulative redeemable preferred stock at $25. The deal was upsized considerably from 2 million shares. Assuming an additional 750,000 shares for the underwriters' overallotment, Sabra will use net proceeds of $138.2 million to pay down its revolver ($92.5 million outstanding as of December 31) and to fund future acquisitions. […] We had modeled Sabra raising $100 million this year through an at-the-market equity program. In our view, the preferred offering obviates the need for additional equity capital until 2014."
Sabra Health Care REIT closed at $28.40 on Thursday.
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