UPDATE: Goldman Sachs Initiates Omega Healthcare Investors at Buy on Attractive Valuation
Goldman Sachs analyst Andrew Rosivach published a report on that initiated coverage on Omega Healthcare Investors (NYSE: OHI) with a Buy rating and $41.00 price target.
Goldman Sachs reported that, “We are initiating coverage of Omega Healthcare (OHI) with a Buy rating, relative to our Attractive healthcare coverage view, and we add the shares to the Americas Conviction List. We have a 12-month price target of $41 (51% upside including dividends). We believe a wide spread between acquisition yields and corporate cost of capital and a smaller current earnings base will support robust earnings growth despite limited contractual rent growth. We estimate that OHI's projected six-year AFFO growth of 99% will be the 4th highest in all of our coverage. In addition, we think that OHI should be able to weather the current government reimbursement environment with minimal impact to its business given current in-place coverage levels and lease durations.”
Shares of Omega Healthcare Investors closed at $28.34 on Wednesday.
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